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MIL-OSI: WTW Reports Fourth Quarter and Full Year 2024 Earnings

Source: GlobeNewswire (MIL-OSI)

Revenue¹ increased 4% over prior year to $3.0 billion for the quarter and increased 5% to $9.9 billion for the year
Organic Revenue growth of 5% for both the quarter and the year
Diluted Earnings per Share was $12.25 for the quarter, up 105% over prior year, and Diluted Loss² was $0.96 for the year.
Adjusted Diluted Earnings per Share was $8.13 for the quarter, up 9% from prior year, and $16.93 for the year, up 17% over prior year
Operating Margin was 29.7% for the quarter, up 300 basis points over prior year, and 6.3% for the year, down 810 basis points from prior year
Adjusted Operating Margin was 36.1% for the quarter, up 190 basis points from prior year, and 23.9% for the year, up 190 basis points over prior year

LONDON, Feb. 04, 2025 (GLOBE NEWSWIRE) — WTW (NASDAQ: WTW) (the “Company”), a leading global advisory, broking and solutions company, today announced financial results for the fourth quarter ended December 31, 2024.

“WTW is entering 2025 with considerable momentum after delivering on our 2024 financial targets through solid revenue growth, robust margin expansion and earnings growth,” said Carl Hess, WTW’s chief executive officer. “The successful completion of our Grow, Simplify and Transform strategy has primed all of our businesses to perform, and we are now stronger, more connected and more efficient than we have ever been. I’m confident our new strategy to accelerate our performance, enhance our efficiency and optimize our portfolio will produce innovative solutions for our customers and create more value for shareholders. I’m proud of our team’s dedication and look forward to executing on our strategic and financial goals in the years ahead.”

Consolidated Results

Fourth Quarter 2024, as reported, USD millions, except %

Key Metrics	Q4-24	Q4-23	Y/Y Change
Revenue¹	$3,035	$2,914	Reported 4% \| CC 5% \| Organic 5%
Income from Operations	$901	$779	16%
Operating Margin %	29.7%	26.7%	300 bps
Adjusted Operating Income	$1,096	$998	10%
Adjusted Operating Margin %	36.1%	34.2%	190 bps
Net Income	$1,248	$623	100%
Adjusted Net Income	$827	$775	7%
Diluted EPS	$12.25	$5.97	105%
Adjusted Diluted EPS	$8.13	$7.44	9%

Revenue was $3.04 billion for the fourth quarter of 2024, an increase of 4% as compared to $2.91 billion for the same period in the prior year. Excluding the impact of foreign currency, revenue increased 5%. On an organic basis, revenue increased 5%. See Supplemental Segment Information for additional detail on book-of-business settlements and interest income included in revenue.

Net Income for the fourth quarter of 2024 was $1.25 billion compared to Net Income of $623 million in the prior-year fourth quarter. Adjusted EBITDA for the fourth quarter was $1.2 billion, or 38.6% of revenue, an increase of 9%, compared to Adjusted EBITDA of $1.1 billion, or 37.1% of revenue, in the prior-year fourth quarter. The U.S. GAAP tax rate for the fourth quarter was 26.0%, and the adjusted income tax rate for the fourth quarter used in calculating adjusted diluted earnings per share was 21.3%.

Full Year 2024, as reported, USD millions, except %

Key Metrics	FY-24	FY-23	Y/Y Change
Revenue¹	$9,930	$9,483	Reported 5% \| CC 5% \| Organic 5%
Income from Operations	$627	$1,365	(54)%
Operating Margin %	6.3%	14.4%	(810) bps
Adjusted Operating Income	$2,378	$2,082	14%
Adjusted Operating Margin %	23.9%	22.0%	190 bps
Net (Loss)/Income²	$(88)	$1,064	NM
Adjusted Net Income	$1,730	$1,536	13%
Diluted EPS²	$(0.96)	$9.95	NM
Adjusted Diluted EPS	$16.93	$14.49	17%

¹	The revenue amounts included in this release are presented on a U.S. GAAP basis except where stated otherwise. This excludes reinsurance revenue which is reported in discontinued operations. The segment discussion is on an organic basis.
²	Net Loss and Diluted Loss Per Share for the year ended 2024 primarily includes impairment charges of over $1.0 billion related to the sale of TRANZACT.
^NM	Not meaningful

Revenue was $9.93 billion for the year ended December 31, 2024, an increase of 5% as compared to $9.48 billion for the prior year. On an organic basis, revenue increased 5%. See Supplemental Segment Information for additional detail on book-of-business settlements and interest income included in revenue.

Net Loss for the year ended December 31, 2024 was $88 million, compared to Net Income of $1.1 billion in the prior year. Adjusted EBITDA for 2024 was $2.7 billion, or 27.3% of revenue, an increase of $278 million, compared to Adjusted EBITDA of $2.4 billion, or 25.6% of revenue, in the prior year.

The U.S. GAAP tax rate for 2024 was 184.7%, and the adjusted income tax rate for 2024 used in calculating adjusted diluted earnings per share was 21.5%.

Cash Flow and Capital Allocation

Cash flows from operating activities were $1.5 billion for the year ended December 31, 2024, compared to $1.3 billion for the prior year. Free cash flow for the years ended December 31, 2024 and 2023 was $1.4 billion and $1.2 billion, respectively, an increase of $184 million, primarily driven by operating margin expansion, partially offset by cash outflows related to transformation and discretionary compensation payments. During the fourth quarter and year ended December 31, 2024, the Company repurchased $395 million and $901 million of WTW shares, respectively.

Fourth Quarter 2024 Segment Highlights

Health, Wealth & Career (“HWC”)

As reported, USD millions, except %

Health, Wealth & Career	Q4-24	Q4-23	Y/Y Change
Total Revenue	$1,853	$1,798	Reported 3% \| CC 3% \| Organic 3%
Operating Income	$776	$729	6%
Operating Margin %	41.9%	40.5%	140 bps

The HWC segment had revenue of $1.85 billion in the fourth quarter of 2024, an increase of 3% (3% increase constant currency and organic) from $1.80 billion in the prior year. Health had organic revenue growth led by increased project work and brokerage income in North America and the continued expansion of our Global Benefits Management client portfolio in International and Europe. Wealth generated organic revenue growth from higher levels of Retirement work globally, an increase in our Investments business due to growth of our LifeSight solution and capital market improvements. Career had organic revenue growth from increased advisory services and product revenue. Benefits Delivery & Outsourcing (BD&O) had an organic revenue decline for the quarter primarily as a result of deliberately moderating growth in TRANZACT.

Operating margins in the HWC segment increased 140 basis points from the prior-year fourth quarter to 41.9%, primarily from Transformation savings. Please refer to the Supplemental Slides for TRANZACT’s standalone historical financial results.

Risk & Broking (“R&B”)

As reported, USD millions, except %

Risk & Broking	Q4-24	Q4-23	Y/Y Change
Total Revenue	$1,141	$1,076	Reported 6% \| CC 7% \| Organic 7%
Operating Income	$383	$354	8%
Operating Margin %	33.5%	32.9%	60 bps

The R&B segment had revenue of $1.14 billion in the fourth quarter of 2024, an increase of 6% (7% increase constant currency and organic) from $1.08 billion in the prior year. Corporate Risk & Broking (CRB) had organic revenue growth driven by higher levels of new business activity and strong client retention. Insurance Consulting and Technology (ICT) had organic revenue growth for the quarter primarily due to strong software sales in Technology.

Operating margins in the R&B segment increased 60 basis points from the prior-year fourth quarter to 33.5%, primarily due to operating leverage driven by organic revenue growth and disciplined expense management, as well as Transformation savings which were partially offset by headwinds from book-of-business activity and foreign currency fluctuations.

Select 2025 Financial Considerations

Changes to Non-GAAP financial measures:

All reported non-GAAP metrics will exclude non-cash net periodic pension and postretirement benefit credits
Free cash flow and free cash flow margin will capture cash outflows for capitalized software costs
Refer to Supplemental Slides for recast of historical Non-GAAP measures

Business mix:

Divested TRANZACT business, which contributed $1.14 to adjusted diluted earnings per share in 2024, is no longer part of the business portfolio
Reinsurance joint venture expected to be a headwind on adjusted diluted earnings per share of approximately $0.25 to $0.35

Free cash flow:

Expect cash outflows in 2025 from the settlement of accrued costs related to the Transformation program which concluded in 2024
Cash taxes related to receipt of earnout from reinsurance divestiture will be classified as Cash Flows from Operating Activities on Statement of Cash Flows

Capital allocation:

Expect share repurchases of ~$1.5 billion, subject to market conditions and potential capital allocation to organic and inorganic investment opportunities

Foreign exchange:

Expect a foreign currency headwind on adjusted diluted earnings per share of approximately $0.18 in 2025 at today’s rates

Adjusted operating margin outlook:

~100 basis points of average annual margin expansion over next 3 years in R&B
Incremental annual margin expansion at HWC and enterprise levels

The 2025 Financial Considerations above include Non-GAAP financial measures. We do not reconcile forward-looking Non-GAAP measures for reasons explained under “WTW Non-GAAP Measures” below.

Conference Call

The Company will host a live webcast and conference call to discuss the financial results for the fourth quarter 2024. It will be held on Tuesday, February 4, 2025, beginning at 9:00 a.m. Eastern Time. A live broadcast of the conference call will be available on WTW’s website here. The conference call will include a question-and-answer session. To participate in the question-and-answer session, please register here. An online replay will be available at www.wtwco.com shortly after the call concludes.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at www.wtwco.com.

WTW Non-GAAP Measures

In order to assist readers of our consolidated financial statements in understanding the core operating results that WTW’s management uses to evaluate the business and for financial planning, we present the following non-GAAP measures: (1) Constant Currency Change, (2) Organic Change, (3) Adjusted Operating Income/Margin, (4) Adjusted EBITDA/Margin, (5) Adjusted Net Income, (6) Adjusted Diluted Earnings Per Share, (7) Adjusted Income Before Taxes, (8) Adjusted Income Taxes/Tax Rate, (9) Free Cash Flow and (10) Free Cash Flow Margin.

We believe that those measures are relevant and provide pertinent information widely used by analysts, investors and other interested parties in our industry to provide a baseline for evaluating and comparing our operating performance, and in the case of free cash flow, our liquidity results.

Within the measures referred to as ‘adjusted’, we adjust for significant items which will not be settled in cash, or which we believe to be items that are not core to our current or future operations. Some of these items may not be applicable for the current quarter, however they may be part of our full-year results. Additionally, we have historically adjusted for certain items which are not described below, but for which we may adjust in a future period when applicable. Items applicable to the quarter or full year results, or the comparable periods, include the following:

Restructuring costs and transaction and transformation – Management believes it is appropriate to adjust for restructuring costs and transaction and transformation when they relate to a specific significant program with a defined set of activities and costs that are not expected to continue beyond a defined period of time, or significant acquisition-related transaction expenses. We believe the adjustment is necessary to present how the Company is performing, both now and in the future when the incurrence of these costs will have concluded.
Impairment – Adjustment to remove the non-cash goodwill impairment associated with our Benefits, Delivery and Administration reporting unit related to the sale of our TRANZACT business.
Provisions for specified litigation matters – We will include provisions for litigation matters which we believe are not representative of our core business operations. Among other things, we determine this by reference to the amount of the loss (net of insurance and other recovery receivables) and by reference to whether the matter relates to an unusual and complex scenario that is not expected to be repeated as part of our ongoing, ordinary business. These amounts are presented net of insurance and other recovery receivables. See the footnotes to the respective reconciliation tables below for more specificity on the litigation matter excluded from adjusted results.
Gains and losses on disposals of operations – Adjustment to remove the gains or losses resulting from disposed operations that have not been classified as discontinued operations.
Pension settlement – Adjustment to remove significant pension settlement to better present how the Company is performing.
Tax effect of significant adjustments – Relates to the incremental tax expense or benefit resulting from significant or unusual events including significant statutory tax rate changes enacted in material jurisdictions in which we operate, internal reorganizations of ownership of certain businesses that reduced the investment held by our U.S.-controlled subsidiaries and the recovery of certain refunds or payment of taxes related to businesses in which we no longer participate.

We evaluate our revenue on an as reported (U.S. GAAP), constant currency and organic basis. We believe presenting constant currency and organic information provides valuable supplemental information regarding our comparable results, consistent with how we evaluate our performance internally.

We consider Constant Currency Change, Organic Change, Adjusted Operating Income/Margin, Adjusted EBITDA/Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Income Before Taxes, Adjusted Income Taxes/Tax Rate and Free Cash Flow to be important financial measures, which are used to internally evaluate and assess our core operations and to benchmark our operating and liquidity results against our competitors. These non-GAAP measures are important in illustrating what our comparable operating and liquidity results would have been had we not incurred transaction-related and non-recurring items. Reconciliations of these measures are included in the accompanying tables with the following exception: The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.

Our non-GAAP measures and their accompanying definitions are presented as follows:

Constant Currency Change – Represents the year-over-year change in revenue excluding the impact of foreign currency fluctuations. To calculate this impact, the prior year local currency results are first translated using the current year monthly average exchange rates. The change is calculated by comparing the prior year revenue, translated at the current year monthly average exchange rates, to the current year as reported revenue, for the same period. We believe constant currency measures provide useful information to investors because they provide transparency to performance by excluding the effects that foreign currency exchange rate fluctuations have on period-over-period comparability given volatility in foreign currency exchange markets.

Organic Change – Excludes the impact of fluctuations in foreign currency exchange rates, as described above and the period-over-period impact of acquisitions and divestitures on current-year revenue. We believe that excluding transaction-related items from our U.S. GAAP financial measures provides useful supplemental information to our investors, and it is important in illustrating what our core operating results would have been had we not included these transaction-related items, since the nature, size and number of these transaction-related items can vary from period to period.

Adjusted Operating Income/Margin – (Loss)/Income from operations adjusted for impairment, amortization, restructuring costs, transaction and transformation and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted operating income margin is calculated by dividing adjusted operating income by revenue. We consider adjusted operating income/margin to be important financial measures, which are used internally to evaluate and assess our core operations and to benchmark our operating results against our competitors.

Adjusted EBITDA/Margin – Net (Loss)/Income adjusted for provision for income taxes, interest expense, impairment, depreciation and amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted EBITDA Margin is calculated by dividing adjusted EBITDA by revenue. We consider adjusted EBITDA/margin to be important financial measures, which are used internally to evaluate and assess our core operations, to benchmark our operating results against our competitors and to evaluate and measure our performance-based compensation plans.

Adjusted Net Income – Net (Loss)/Income Attributable to WTW adjusted for impairment, amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results and the related tax effect of those adjustments and the tax effects of internal reorganizations. This measure is used solely for the purpose of calculating adjusted diluted earnings per share.

Adjusted Diluted Earnings Per Share – Adjusted Net Income divided by the weighted-average number of ordinary shares, diluted. Adjusted diluted earnings per share is used to internally evaluate and assess our core operations and to benchmark our operating results against our competitors.

Adjusted Income Before Taxes – (Loss)/Income from operations before income taxes adjusted for impairment, amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted income before taxes is used solely for the purpose of calculating the adjusted income tax rate.

Adjusted Income Taxes/Tax Rate – Benefit from/(provision for) income taxes adjusted for taxes on certain items of impairment, amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, the tax effects of internal reorganizations, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results, divided by adjusted income before taxes. Adjusted income taxes is used solely for the purpose of calculating the adjusted income tax rate. Management believes that the adjusted income tax rate presents a rate that is more closely aligned to the rate that we would incur if not for the reduction of pre-tax income for the adjusted items and the tax effects of internal reorganizations, which are not core to our current and future operations.

Free Cash Flow – Cash flows from operating activities less cash used to purchase fixed assets and software for internal use. Free Cash Flow is a liquidity measure and is not meant to represent residual cash flow available for discretionary expenditures. Management believes that free cash flow presents the core operating performance and cash-generating capabilities of our business operations.

Free Cash Flow Margin – Free Cash Flow as a percentage of revenue, which represents how much of revenue would be realized on a cash basis. We consider this measure to be a meaningful metric for tracking cash conversion on a year-over-year basis due to the non-cash nature of our pension income, which is included in our GAAP and Non-GAAP earnings metrics presented herein.

These non-GAAP measures are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. Non-GAAP measures should be considered in addition to, and not as a substitute for, the information contained within our condensed consolidated financial statements.

WTW Forward-Looking Statements

This document contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward-looking statements include information about possible or assumed future results of our operations or certain considerations relating to our future results. All statements, other than statements of historical facts, that address activities, events, or developments that we expect or anticipate may occur in the future, including such things as our outlook, plans and references to future performance, including our future financial and operating results (including our revenue, costs, or margins), short-term and long-term financial goals, plans, objectives, expectations and intentions, including with respect to organic revenue growth, free cash flow generation, adjusted net revenue, adjusted operating margin and adjusted earnings per share; future share repurchases; demand for our services and competitive strengths; strategic goals; existing and evolving business strategies including those related to acquisition and disposition activity; the benefits of new initiatives; the growth of our business and operations; the sustained health of our product, service, transaction, client, and talent assessment and management pipelines; our ability to successfully manage ongoing leadership, organizational, and technology changes, including investments in improving systems and processes; our ability to implement and realize anticipated benefits of any cost-savings initiatives including our multi-year operational transformation program; the potential impact of natural or man-made disasters like health pandemics and other world health crises; future capital expenditures; ongoing working capital efforts; the impact of changes to tax laws on our financial results; and our recognition of future impairment charges or write-off of receivables, are forward-looking statements. Also, when we use words such as ‘may’, ‘will’, ‘would’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘plan’, ‘continues’, ‘seek’, ‘target’, ‘goal’, ‘focus’, ‘probably’, or similar expressions, we are making forward-looking statements. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature.

There are important risks, uncertainties, events and factors that could cause our actual results or performance to differ materially from those in the forward-looking statements contained in this document, including the following: our ability to successfully establish, execute and achieve our global business strategy as it evolves; our ability to fully realize the anticipated benefits of our growth strategy, including inorganic growth through acquisitions; our ability to execute strategic transactions, including both acquisitions and dispositions, including our ability to receive adequate consideration or any earnout proceeds in return for any dispositions or integrate or manage acquired businesses or effect internal reorganizations; incremental risks relating to the transitional arrangements in effect subsequent to our previously completed sale of TRANZACT; our ability to successfully manage ongoing organizational changes, investments in improving systems and processes, and in connection with our acquisition and divestiture activities; risks relating to changes in our management structures and in senior leadership; our ability to achieve our short-term and long-term financial goals, such as with respect to our cash flow generation, and the timing with respect to such achievement; the risks related to changes in general economic conditions, business and political conditions, changes in the financial markets, inflation, credit availability, increased interest rates and changes in trade policies; the risks to our short-term and long-term financial goals from any of the risks or uncertainties set forth herein; the risks relating to the adverse impacts of macroeconomic trends, including inflation, changes in interest rates and trade policies, as well as political events, war, such as the Russia-Ukraine and Middle East conflicts, and other international disputes, terrorism, natural disasters, public health issues and other business interruptions on the global economy and capital markets, which could have a material adverse effect on our business, financial condition, results of operations, and long-term goals; our ability to successfully hedge against fluctuations in foreign currency rates; the risks relating to the adverse impacts of natural or man-made disasters such as health pandemics and other world health crises on the demand for our products and services, our cash flows and our business operations; material interruptions to or loss of our information processing capabilities, or failure to effectively maintain and upgrade our information technology resources and systems and related risks of cybersecurity breaches or incidents; our ability to comply with complex and evolving regulations related to data privacy, cybersecurity, and artificial intelligence; significant competition that we face and the potential for loss of market share and/or profitability; the impact of seasonality and differences in timing of renewals and non-recurring revenue increases from disposals and book-of-business sales; the insufficiency of client data protection, potential breaches of information systems or insufficient safeguards against cybersecurity breaches or incidents; the risk of increased liability or new legal claims arising from our new and existing products and services, and expectations, intentions and outcomes relating to outstanding litigation; the risk of substantial negative outcomes on existing litigation or investigation matters; changes in the regulatory environment in which we operate, including, among other risks, the impacts of pending competition law and regulatory investigations; various claims, government inquiries or investigations or the potential for regulatory action; our ability to integrate direct-to-consumer sales and marketing solutions with our existing offerings and solutions; disasters or business continuity problems; our ability to successfully enhance our billing, collection and other working capital efforts, and thereby increase our free cash flow; our ability to properly identify and manage conflicts of interest; reputational damage, including from association with third parties; reliance on third-party service providers and suppliers; the loss of key employees or a large number of employees and rehiring rates; our ability to maintain our corporate culture; doing business internationally, including the impact of foreign currency exchange rates; compliance with extensive government regulation; the risk of sanctions imposed by governments, or changes to associated sanction regulations (such as sanctions imposed on Russia) and related counter-sanctions; our ability to effectively apply technology, data and analytics changes for internal operations, maintaining industry standards and meeting client preferences; changes and developments in the insurance industry or the U.S. healthcare system, including those related to Medicare, any legislative actions from the current U.S. Congress, the recent Final Rule from the Centers for Medicare & Medicaid Services for contract year 2025 and any judicial claims, rulings and appeals related thereto, and any other changes and developments in legal, regulatory, economic, business or operational conditions that could impact our Medicare benefits businesses; the inability to protect our intellectual property rights, or the potential infringement upon the intellectual property rights of others; fluctuations in our pension assets and liabilities and related changes in pension income, including as a result of, related to, or derived from movements in the interest rate environment, investment returns, inflation, or changes in other assumptions that are used to estimate our benefit obligations and their effect on adjusted earnings per share; our capital structure, including indebtedness amounts, the limitations imposed by the covenants in the documents governing such indebtedness and the maintenance of the financial and disclosure controls and procedures of each; our ability to obtain financing on favorable terms or at all; adverse changes in our credit ratings; the impact of recent or potential changes to U.S. or foreign laws, and the enactment of additional, or the revision of existing, state, federal, and/or foreign laws and regulations, recent judicial decisions and development of case law, other regulations and any policy changes and legislative actions, including those that may impose additional excise taxes or impact our effective tax rate; U.S. federal income tax consequences to U.S. persons owning at least 10% of our shares; changes in accounting principles, estimates or assumptions; our recognition of future non-cash pre-tax losses and related impairment charges; risks relating to or arising from environmental, social and governance practices; fluctuation in revenue against our relatively fixed or higher than expected expenses; the laws of Ireland being different from the laws of the U.S. and potentially affording less protections to the holders of our securities; and our holding company structure potentially preventing us from being able to receive dividends or other distributions in needed amounts from our subsidiaries.

The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. For more information, please see Part I, Item 1A in our Annual Report on Form 10-K, and our subsequent filings with the SEC. Copies are available online at www.sec.gov or www.wtwco.com.

Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved.

Our forward-looking statements speak only as of the date made, and we will not update these forward-looking statements unless the securities laws require us to do so. With regard to these risks, uncertainties and assumptions, the forward-looking events discussed in this document may not occur, and we caution you against unduly relying on these forward-looking statements.

Contact

INVESTORS
Claudia De La Hoz | Claudia.Delahoz@wtwco.com

WTW Supplemental Segment Information (In millions of U.S. dollars) (Unaudited)

REVENUE
						Components of Revenue Change⁽ⁱ⁾
						Less:		Less:
	Three Months Ended December 31,				As Reported	Currency	Constant Currency	Acquisitions/	Organic
	2024		2023		% Change	Impact	Change	Divestitures	Change

Health, Wealth & Career
Revenue excluding interest income	$	1,847	$	1,791	3%	0%	3%	0%	3%
Interest income		6		7
Total		1,853		1,798	3%	0%	3%	0%	3%

Risk & Broking
Revenue excluding interest income	$	1,115	$	1,049	6%	(1)%	7%	0%	7%
Interest income		26		27
Total		1,141		1,076	6%	(1)%	7%	0%	7%

Segment Revenue	$	2,994	$	2,874	4%	(1)%	5%	0%	5%
Corporate, reimbursable expenses and other		37		35
Interest income		4		5
Revenue	$	3,035	$	2,914	4%	(1)%	5%	0%	5%⁽ⁱⁱ⁾

						Components of Revenue Change⁽ⁱ⁾
						Less:		Less:
	Years Ended December 31,				As Reported	Currency	Constant Currency	Acquisitions/	Organic
	2024		2023		% Change	Impact	Change	Divestitures	Change

Health, Wealth & Career
Revenue excluding interest income	$	5,745	$	5,557	3%	0%	3%	0%	4%
Interest income		32		25
Total		5,777		5,582	3%	0%	4%	0%	4%

Risk & Broking
Revenue excluding interest income	$	3,926	$	3,656	7%	0%	8%	0%	8%
Interest income		112		79
Total		4,038		3,735	8%	(1)%	9%	0%	8%

Segment Revenue	$	9,815	$	9,317	5%	0%	6%	0%	6%
Corporate, reimbursable expenses and other		93		125
Interest income		22		41
Revenue	$	9,930	$	9,483	5%	0%	5%	0%	5%⁽ⁱⁱ⁾

⁽ⁱ⁾ Components of revenue change may not add due to rounding.
⁽ⁱⁱ⁾ Interest income did not contribute to organic change for the three months and year ended December 31, 2024.

BOOK-OF-BUSINESS SETTLEMENTS AND INTEREST INCOME

	Three Months Ended December 31,
	HWC				R&B				Corporate				Total
	2024		2023		2024		2023		2024		2023		2024		2023
Book-of-business settlements	$	5	$	1	$	6	$	14	$	—	$	—	$	11	$	15
Interest income		6		7		26		27		4		5		36		39
Total	$	11	$	8	$	32	$	41	$	4	$	5	$	47	$	54

	Years Ended December 31,
	HWC				R&B				Corporate				Total
	2024		2023		2024		2023		2024		2023		2024		2023
Book-of-business settlements	$	8	$	1	$	14	$	25	$	—	$	—	$	22	$	26
Interest income		32		25		112		79		22		41		166		145
Total	$	40	$	26	$	126	$	104	$	22	$	41	$	188	$	171

SEGMENT OPERATING INCOME ⁽ⁱ⁾

	Three Months Ended December 31,
	2024		2023

Health, Wealth & Career	$	776	$	729
Risk & Broking		383		354
Segment Operating Income	$	1,159	$	1,083

	Years Ended December 31,
	2024		2023

Health, Wealth & Career	$	1,717	$	1,565
Risk & Broking		958		813
Segment Operating Income	$	2,675	$	2,378

⁽ⁱ⁾ Segment operating income excludes certain costs, including amortization of intangibles, restructuring costs, transaction and transformation expenses, certain litigation provisions, and to the extent that the actual expense based upon which allocations are made differs from the forecast/budget amount, a reconciling item will be created between internally-allocated expenses and the actual expenses reported for U.S. GAAP purposes.

SEGMENT OPERATING MARGINS

	Three Months Ended December 31,
	2024	2023
Health, Wealth & Career	41.9%	40.5%
Risk & Broking	33.5%	32.9%

	Years Ended December 31,
	2024	2023
Health, Wealth & Career	29.7%	28.0%
Risk & Broking	23.7%	21.8%

RECONCILIATIONS OF SEGMENT OPERATING INCOME TO INCOME FROM OPERATIONS BEFORE INCOME TAXES

	Three Months Ended December 31,
	2024			2023

Segment Operating Income	$	1,159		$	1,083
Amortization		(50	)		(60	)
Restructuring costs		(32	)		(38	)
Transaction and transformation⁽ⁱ⁾		(113	)		(121	)
Unallocated, net⁽ⁱⁱ⁾		(63	)		(85	)
Income from Operations		901			779
Interest expense		(66	)		(63	)
Other income, net		853			23
Income from operations before income taxes	$	1,688		$	739

	Years Ended December 31,
	2024			2023

Segment Operating Income	$	2,675		$	2,378
Impairment⁽ⁱⁱⁱ⁾		(1,042	)		—
Amortization		(226	)		(263	)
Restructuring costs		(61	)		(68	)
Transaction and transformation⁽ⁱ⁾		(409	)		(386	)
Unallocated, net⁽ⁱⁱ⁾		(310	)		(296	)
Income from Operations		627			1,365
Interest expense		(263	)		(235	)
Other (loss)/income, net		(260	)		149
Income from operations before income taxes	$	104		$	1,279

⁽ⁱ⁾ In 2024 and 2023, in addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program.
⁽ⁱⁱ⁾ Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes.
⁽ⁱⁱⁱ⁾ Represents the non-cash goodwill impairment associated with our BDA reporting unit related to the completed sale of our TRANZACT business.

WTW
Reconciliations of Non-GAAP Measures
(In millions of U.S. dollars, except per share data)
(Unaudited)

RECONCILIATIONS OF NET INCOME/(LOSS) ATTRIBUTABLE TO WTW TO ADJUSTED DILUTED EARNINGS PER SHARE

	Three Months Ended December 31,
	2024			2023

Net income attributable to WTW	$	1,246		$	622
Adjusted for certain items:
Amortization		50			60
Restructuring costs		32			38
Transaction and transformation		113			121
Pension settlement		23			—
(Gain)/loss on disposal of operations		(853	)		1
Tax effect on certain items listed above⁽ⁱ⁾		216			(67	)
Adjusted Net Income	$	827		$	775

Weighted-average ordinary shares, diluted		102			104

Diluted Earnings Per Share	$	12.25		$	5.97
Adjusted for certain items:⁽ⁱⁱ⁾
Amortization		0.49			0.58
Restructuring costs		0.31			0.36
Transaction and transformation		1.11			1.16
Pension settlement		0.23			—
(Gain)/loss on disposal of operations		(8.39	)		0.01
Tax effect on certain items listed above⁽ⁱ⁾		2.12			(0.64	)
Adjusted Diluted Earnings Per Share⁽ⁱⁱ⁾	$	8.13		$	7.44

	Years Ended December 31,
	2024			2023

Net (loss)/income attributable to WTW	$	(98	)	$	1,055
Adjusted for certain items:
Impairment		1,042			—
Amortization		226			263
Restructuring costs		61			68
Transaction and transformation		409			386
Provision for specified litigation matter⁽ⁱⁱⁱ⁾		13			—
Pension settlement		23			—
Loss/(gain) on disposal of operations		337			(43	)
Tax effect on certain items listed above⁽ⁱ⁾		(276	)		(195	)
Tax effect of significant adjustments		(7	)		2
Adjusted Net Income	$	1,730		$	1,536

Weighted-average ordinary shares, diluted^(iv)		102			106

Diluted (Loss)/Earnings Per Share^(iv)	$	(0.96	)	$	9.95
Adjusted for certain items:⁽ⁱⁱ⁾
Impairment		10.20			—
Amortization		2.21			2.48
Restructuring costs		0.60			0.64
Transaction and transformation		4.00			3.64
Provision for specified litigation matter⁽ⁱⁱⁱ⁾		0.13			—
Pension settlement		0.23			—
Loss/(gain) on disposal of operations		3.30			(0.41	)
Tax effect on certain items listed above⁽ⁱ⁾		(2.70	)		(1.84	)
Tax effect of significant adjustments		(0.07	)		0.02
Adjusted Diluted Earnings Per Share⁽ⁱⁱ⁾	$	16.93		$	14.49

⁽ⁱ⁾ The tax effect was calculated using an effective tax rate for each item.
⁽ⁱⁱ⁾ Per share values and totals may differ due to rounding.
⁽ⁱⁱⁱ⁾ Represents a provision related to litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. We believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations.
^(iv) When there is a net loss attributable to WTW for the period, basic and diluted shares and earnings per share are the same values.

RECONCILIATIONS OF NET INCOME/(LOSS) TO ADJUSTED EBITDA

	Three Months Ended December 31,
	2024				2023

Net Income	$	1,248		41.1%	$	623	21.4%
Provision for income taxes		440				116
Interest expense		66				63
Depreciation		54				58
Amortization		50				60
Restructuring costs		32				38
Transaction and transformation		113				121
Pension settlement		23				—
(Gain)/loss on disposal of operations		(853	)			1
Adjusted EBITDA and Adjusted EBITDA Margin	$	1,173		38.6%	$	1,080	37.1%

	Years Ended December 31,
	2024				2023

Net (Loss)/Income	$	(88	)	(0.9)%	$	1,064		11.2%
Provision for income taxes		192				215
Interest expense		263				235
Impairment		1,042				—
Depreciation		230				242
Amortization		226				263
Restructuring costs		61				68
Transaction and transformation		409				386
Provision for specified litigation matter⁽ⁱ⁾		13				—
Pension settlement		23				—
Loss/(gain) on disposal of operations		337				(43	)
Adjusted EBITDA and Adjusted EBITDA Margin	$	2,708		27.3%	$	2,430		25.6%

⁽ⁱ⁾ Represents a provision related to litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. We believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations.

RECONCILIATIONS OF INCOME FROM OPERATIONS TO ADJUSTED OPERATING INCOME

	Three Months Ended December 31,
	2024			2023

Income from operations and Operating margin	$	901	29.7%	$	779	26.7%
Adjusted for certain items:
Amortization		50			60
Restructuring costs		32			38
Transaction and transformation		113			121
Adjusted operating income and Adjusted operating income margin	$	1,096	36.1%	$	998	34.2%

	Years Ended December 31,
	2024			2023

Income from operations and Operating margin	$	627	6.3%	$	1,365	14.4%
Adjusted for certain items:
Impairment		1,042			—
Amortization		226			263
Restructuring costs		61			68
Transaction and transformation		409			386
Provision for specified litigation matter⁽ⁱ⁾		13			—
Adjusted operating income and Adjusted operating income margin	$	2,378	23.9%	$	2,082	22.0%

⁽ⁱ⁾ Represents a provision related to litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. We believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations.

RECONCILIATIONS OF GAAP INCOME TAXES/TAX RATE TO ADJUSTED INCOME TAXES/TAX RATE

	Three Months Ended December 31,
	2024			2023

Income from operations before income taxes	$	1,688		$	739

Adjusted for certain items:
Amortization		50			60
Restructuring costs		32			38
Transaction and transformation		113			121
Pension settlement		23			—
(Gain)/loss on disposal of operations		(853	)		1
Adjusted income before taxes	$	1,053		$	959

Provision for income taxes	$	440		$	116
Tax effect on certain items listed above⁽ⁱⁱ⁾		(216	)		67
Adjusted income taxes	$	224		$	183

U.S. GAAP tax rate		26.0	%		15.7	%
Adjusted income tax rate		21.3	%		19.1	%

	Years Ended December 31,
	2024			2023

Income from operations before income taxes	$	104		$	1,279

Adjusted for certain items:
Impairment		1,042			—
Amortization		226			263
Restructuring costs		61			68
Transaction and transformation		409			386
Provision for specified litigation matter⁽ⁱ⁾		13			—
Pension settlement		23			—
Loss/(gain) on disposal of operations		337			(43	)
Adjusted income before taxes	$	2,215		$	1,953

Provision for income taxes	$	192		$	215
Tax effect on certain items listed above⁽ⁱⁱ⁾		276			195
Tax effect of significant adjustments		7			(2	)
Adjusted income taxes	$	475		$	408

U.S. GAAP tax rate		184.7	%		16.8	%
Adjusted income tax rate		21.5	%		20.9	%

⁽ⁱ⁾ Represents a provision related to litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. We believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations.
⁽ⁱⁱ⁾ The tax effect was calculated using an effective tax rate for each item.

RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW

	Years Ended December 31,
	2024			2023

Cash flows from operating activities	$	1,512		$	1,345
Less: Additions to fixed assets and software for internal use		(136	)		(153	)
Free Cash Flow	$	1,376		$	1,192

Revenue	$	9,930		$	9,483
Free Cash Flow Margin		13.9	%		12.6	%

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Statements of Income (In millions of U.S. dollars, except per share data) (Unaudited)

	Three Months Ended December 31,						Years Ended December 31,
	2024			2023			2024			2023
Revenue	$	3,035		$	2,914		$	9,930		$	9,483

Costs of providing services
Salaries and benefits		1,367			1,325			5,502			5,344
Other operating expenses		518			533			1,833			1,815
Impairment		—			—			1,042			—
Depreciation		54			58			230			242
Amortization		50			60			226			263
Restructuring costs		32			38			61			68
Transaction and transformation		113			121			409			386
Total costs of providing services		2,134			2,135			9,303			8,118

Income from operations		901			779			627			1,365

Interest expense		(66	)		(63	)		(263	)		(235	)
Other income/(loss), net		853			23			(260	)		149

INCOME FROM OPERATIONS BEFORE INCOME TAXES		1,688			739			104			1,279

Provision for income taxes		(440	)		(116	)		(192	)		(215	)

NET INCOME/(LOSS)		1,248			623			(88	)		1,064

Income attributable to non-controlling interests		(2	)		(1	)		(10	)		(9	)

NET INCOME/(LOSS) ATTRIBUTABLE TO WTW	$	1,246		$	622		$	(98	)	$	1,055

EARNINGS/(LOSS) PER SHARE
Basic earnings/(loss) per share	$	12.32		$	6.02		$	(0.96	)	$	10.01
Diluted earnings/(loss) per share	$	12.25		$	5.97		$	(0.96	)	$	9.95

Weighted-average ordinary shares, basic		101			103			102			105
Weighted-average ordinary shares, diluted		102			104			102			106

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Balance Sheets (In millions of U.S. dollars, except share data) (Unaudited)

	December 31,			December 31,
	2024			2023
ASSETS
Cash and cash equivalents	$	1,890		$	1,424
Fiduciary assets		9,504			9,073
Accounts receivable, net		2,494			2,572
Prepaid and other current assets		1,217			364
Total current assets		15,105			13,433
Fixed assets, net		661			720
Goodwill		8,799			10,195
Other intangible assets, net		1,295			2,016
Right-of-use assets		485			565
Pension benefits assets		530			588
Other non-current assets		806			1,573
Total non-current assets		12,576			15,657
TOTAL ASSETS	$	27,681		$	29,090
LIABILITIES AND EQUITY
Fiduciary liabilities	$	9,504		$	9,073
Deferred revenue and accrued expenses		2,211			2,104
Current debt		—			650
Current lease liabilities		118			125
Other current liabilities		793			678
Total current liabilities		12,626			12,630
Long-term debt		5,309			4,567
Liability for pension benefits		615			563
Deferred tax liabilities		45			542
Provision for liabilities		341			365
Long-term lease liabilities		502			592
Other non-current liabilities		226			238
Total non-current liabilities		7,038			6,867
TOTAL LIABILITIES		19,664			19,497
COMMITMENTS AND CONTINGENCIES
EQUITY⁽ⁱ⁾
Additional paid-in capital		10,989			10,910
Retained earnings		109			1,466
Accumulated other comprehensive loss, net of tax		(3,158	)		(2,856	)
Total WTW shareholders’ equity		7,940			9,520
Non-controlling interests		77			73
Total Equity		8,017			9,593
TOTAL LIABILITIES AND EQUITY	$	27,681		$	29,090

________________________
(i) Equity includes (a) Ordinary shares $0.000304635 nominal value; Authorized 1,510,003,775; Issued 99,805,780 (2024) and 102,538,072 (2023); Outstanding 99,805,780 (2024) and 102,538,072 (2023) and (b) Preference shares, $0.000115 nominal value; Authorized 1,000,000,000 and Issued none in 2024 and 2023.

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Statements of Cash Flows (In millions of U.S. dollars) (Unaudited)

	Years Ended December 31,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
NET (LOSS)/INCOME	$	(88	)	$	1,064
Adjustments to reconcile net income to total net cash from operating activities:
Depreciation		230			242
Amortization		226			263
Impairment		1,042			—
Non-cash restructuring charges		41			38
Non-cash lease expense		98			105
Net periodic benefit of defined benefit pension plans		4			(26	)
Provision for doubtful receivables from clients		13			6
Benefit from deferred income taxes		(213	)		(109	)
Share-based compensation		121			125
Net loss/(gain) on disposal of operations		337			(43	)
Non-cash foreign exchange (gain)/loss		(31	)		20
Other, net		58			31
Changes in operating assets and liabilities, net of effects from purchase of subsidiaries:
Accounts receivable		(233	)		(206	)
Other assets		(373	)		(185	)
Other liabilities		301			16
Provisions		(21	)		4
Net cash from operating activities		1,512			1,345

CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES
Additions to fixed assets and software for internal use		(136	)		(153	)
Capitalized software costs		(109	)		(89	)
Acquisitions of operations, net of cash acquired		(107	)		(6	)
Proceeds from sale of operations		619			89
Cash and fiduciary funds transferred in sale of operations		(5	)		(922	)
Purchase of investments		(12	)		(4	)
Net cash from/(used in) investing activities		250			(1,085	)

CASH FLOWS USED IN FINANCING ACTIVITIES
Senior notes issued		746			748
Debt issuance costs		(9	)		(7	)
Repayments of debt		(655	)		(254	)
Repurchase of shares		(901	)		(1,000	)
Net proceeds/(payments) from fiduciary funds held for clients		785			(234	)
Payments of deferred and contingent consideration related to acquisitions		(2	)		(12	)
Cash paid for employee taxes on withholding shares		(56	)		(26	)
Dividends paid		(354	)		(352	)
Acquisitions of and dividends paid to non-controlling interests		(13	)		(63	)
Net cash used in financing activities		(459	)		(1,200	)

INCREASE/(DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		1,303			(940	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(97	)		11
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD ⁽ⁱ⁾		3,792			4,721
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD ⁽ⁱ⁾	$	4,998		$	3,792

________________________
(i) The amounts of cash, cash equivalents and restricted cash, their respective classification on the condensed consolidated balance sheets, as well as their respective portions of the increase or decrease in cash, cash equivalents and restricted cash for each of the periods presented have been included in the Supplemental Disclosures of Cash Flow Information section.

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

	Years Ended December 31,
	2024		2023

Supplemental disclosures of cash flow information:
Cash and cash equivalents	$	1,890	$	1,424
Fiduciary funds (included in fiduciary assets)		3,108		2,368
Total cash, cash equivalents and restricted cash	$	4,998	$	3,792

Increase/(decrease) in cash, cash equivalents and other restricted cash	$	510	$	163
Increase/(decrease) in fiduciary funds		793		(1,103	)
Total ⁽ⁱ⁾	$	1,303	$	(940	)

⁽ⁱ⁾ Does not include the effect of exchange rate changes on cash, cash equivalents and restricted cash.

The MIL Network –

February 5, 2025

MIL-OSI Asia-Pac: National Seeds Corporation Limited Chairman presents dividend cheque to Union Minister Shri Shivraj Singh Chouhan

Source: Government of India (2)

National Seeds Corporation Limited Chairman presents dividend cheque to Union Minister Shri Shivraj Singh Chouhan

NSC declares the highest ever dividend of Rs. 35.30 Crores

Posted On: 04 FEB 2025 3:58PM by PIB Delhi

National Seeds Corporation Limited (NSC), a Public Sector Undertaking under the Ministry of Agriculture and Farmers’ Welfare, has announced the declaration of final Dividend of ₹ 35.30 Crores for the Financial Year 2023-24, representing 5% of its net worth, in compliance with Department of Investment and Public Asset Management-DIPAM guidelines. This highest ever dividend underscores NSC’s commitment to contributing to National Agricultural Development while ensuring financial sustainability.

The Dividend cheque was presented to the Minister of Agriculture and Farmers’ Welfare Shri Shivraj Singh Chouhan by Dr. Maninder Kaur Dwivedi, Chairperson cum Managing Director of NSC, in a ceremony held at Krishi Bhawan in New Delhi today. On this occasion Shri Devesh Chaturvedi, Secretary, Shri Ajeet Kumar Sahu, Joint Secretary (Seeds) Department of Agriculture and Farmers Welfare, Government of India and Senior Officials from NSC and Ministry of Agriculture were also present.

NSC is a Schedule ‘B’-Mini Ratna Category-I company wholly owned by the Government of India under the administrative control of the Ministry of Agriculture and Farmers Welfare. Established in 1963, NSC is engaged in the production and distribution of certified seeds to enhance agricultural productivity and ensure food security in India.

During FY 2023-24, NSC recorded significant growth in its financial performance. The revenue from operations increased to ₹1,143.26 Crores from ₹1,078.23 Crores in the previous year, while the total income rose to ₹1,182.48 Crores (ever highest) compared to ₹1,112.13 Crores in 2022-23. The company’s profitability also witnessed a substantial increase, with Profit Before Tax (PBT) surging by 64.74% to ₹86.81 Crores and ever highest Profit After Tax (PAT) growing by 38.15% to ₹73.64 Crores.

NSC’s operational efficiency and strategic market expansion contributed to this growth. The company achieved seed sales revenue of ₹1005 Crores, marking an increase from ₹947 Crores in the previous year. Notably, non-subsidized seed sales reached ₹920 Crores, up from ₹847.83 Crores. Online seed sales also saw a remarkable rise, reflecting NSC’s efforts in digital transformation. The company strengthened its market presence by appointing 992 new dealers, bringing the total dealer network to 4,665. The Company also appointed 2,126 no. of Farmers Producers Organisations (FPOs) and PACs and LAMPs.

On the production front, NSC continued to enhance its capabilities, with raw seed production/procurement reaching 17.10 lakh quintals. The seed processing capacity increased to 25.67 Lakhs quintal, supported by infrastructure improvements. Additionally, NSC played a crucial role in Government agricultural initiatives, supplying seeds to the Government, State Governments, dealers and also selling online via ONDC platform.

NSC is producing seeds in its five big Farms located at Sardargarh, Suratgarh, Jetsar in Rajasthan, Hisar in Haryana and Raichur in Karnataka with total area of 21,841 Ha. and through 14,166 Registered growers. The Company produces Test seeds to Breeder Seeds to Foundation seeds to Certified seeds, chronologically. The Company operates from 11 Regional Offices, 48 Area Offices, 29 Production Centres, 75 Seed processing plants, having 7 Air conditioned seed storage facilities, and 180 seed storage godowns. The company has 4 Quality control labs and 1 DNA Finger printing lab.

NSC remains committed to its mission of providing high-quality seeds to farmers across the country. The Corporation continues to prioritize quality and sustainability, ensuring the availability of a diverse range of Bio fortified and climate resilient seed varieties. The product basket comprises of 80 crops and 900 varieties/ hybrids comprising Cereals, Oilseeds, Pulses, Millets, Fodder, Fiber, Green manure and wide range of vegetables. Saplings of fruit crops like Citrus, Pomegranates, Guava, Mango, Aonla, Ornamentals and Forestry saplings/ plants are also being produced. NSC is committed to cater to the varying agro-climatic conditions of India and support farmers to contribute to the Nation’s Agricultural growth.

All NSC Seeds and most of the Planting Materials are available on the Open Network for Digital Commerce (ONDC). The same can be ordered online and it is home delivered through the logistic partners. NSC Seeds and Planting Material can be searched on any of the 30+ ONDC App, which are interoperable, and order can be placed online.

*****

MG/KSR

(Release ID: 2099594) Visitor Counter : 52

MIL OSI Asia Pacific News –

February 5, 2025

MIL-OSI United Kingdom: £35 million added to State Pension pots

Source: United Kingdom – Executive Government Non-Ministerial Departments 2

Thousands of people top up National Insurance records to maximise State Pensions

Only two months left to boost State Pension by filling gaps in National Insurance records from 2006 onwards
Since the launch of the digital service last April, 37,000 people have topped up more than 68,000 years, worth £35 million

People wanting to maximise their State Pension by plugging gaps in their National Insurance record have contributed to a total of 68,673 years, worth £35 million, using the online service since April last year HM Revenue and Customs (HMRC) has revealed.

Analysis of the digital service has shown:

more than 37,000 online payments have been made through the service
65% of the years topped up by customers are from 2017 onwards
the average online top-up payment is £1,835
the largest weekly State Pension increase is £113.76

HMRC and Department for Work and Pensions (DWP) are reminding customers they only have 2 months up until 5 April to check their National Insurance record and fill any gaps from 6 April 2006 onwards.

From 6 April 2025, people will only be able to make voluntary National Insurance contributions for the previous 6 tax years, in line with normal time limits.

The Check your State Pension forecast service on GOV.UK is the quickest and easiest way customers can check what their pension will be in retirement and take action if they need to. People can also use the HMRC app to check their State Pension forecast.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:

There are just 2 months left to check and fill any gaps in your National Insurance record from 2006 onwards to boost your State Pension entitlement. Don’t delay – it is quick and easy to check your National Insurance record on GOV.UK and it could help your finances in retirement.

Since the launch of the enhanced digital service in April last year, more than 4.3 million people have used it to check their State Pension forecast. The end-to-end service means customers can also use it to check and view gaps in their National Insurance record, calculate the difference any payment will make to their State Pension and then make one payment for however many years they need to top up.

Everyone should be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone. HMRC scams advice is available on GOV.UK.

Further information

More information on voluntary National Insurance contributions

Customers should check if they can get National Insurance credits before they look into paying voluntary contributions

Men born after 6 April 1951 or women born after 6 April 1953 are eligible to make voluntary National Insurance contributions to boost their new State Pension.

In 2023, the previous government extended the deadline to pay voluntary NI contributions to 5 April 2025 for those affected by new State Pension transitional arrangements. This covers tax years from 6 April 2006 to 5 April 2018. The extended deadline means that people now have more time to properly consider whether paying voluntary contributions is right for them and ensures no-one need miss out on the possibility of increasing their State Pension.

Customers can usually pay voluntary contributions for the past 6 tax years. The deadline is 5 April each year.

The majority of customers of working age will be able to use the online service, without needing to phone HMRC or DWP, including those living abroad who want to pay voluntary contributions for years they were resident in the UK. However, it is not currently available to those who are already receiving their State Pension, self-employed customers or customers currently living outside the UK with gaps incurred while working abroad. They can continue to manage their NICs as set out on GOV.UK.

HMRC app users can also see their pension details at their fingertips including their current potential retirement date as well as annual, monthly and weekly forecasts as well as checking their NI record.

Published 4 February 2025

MIL OSI United Kingdom –

February 4, 2025

MIL-OSI United Kingdom: Local government expenditure and income in 2023-24

Source: Scottish Government

A National Statistics Publication.

The Chief Statistician has released figures on local government finance in 2023-24. These figures provide a comprehensive overview of the financial activity of local government, including revenue expenditure and income; capital expenditure and financing; reserves; debt; and pensions.

Revenue expenditure is the cost of delivering services each year. Local authorities’ net revenue expenditure in 2023-24 was £14,296 million. Education and Social Work were the services with highest net revenue expenditure, accounting for £6,960 million and £4,604 million respectively.

Net revenue expenditure on Central Services increased by 103.2 per cent, or £352 million, between 2022-23 and 2023-24. Of this increase, £260 million was due to Equal Pay payments that were made by Glasgow City Council during 2023-24.

Capital expenditure is expenditure that creates the buildings and infrastructure necessary to provide services, such as schools and roads. Local authorities incurred £3,689 million of capital expenditure in 2023-24. This was predominantly financed by grants and contributions of £1,704 million and borrowing of £1,640 million.

Usable reserves are local authorities’ surplus income from previous years which can be used to finance future revenue or capital expenditure. At 31 March 2024, local authorities held £4,258 million of usable reserves.

When local authorities borrow money or use credit arrangements to finance capital expenditure, a debt is created which has to be repaid from future revenues. In 2023-24, as a result of the statutory flexibility granted by Ministers, local authorities made debt repayments of minus £67 million. That is, rather than repay debt, they received a windfall of £67 million as a result of the service concession flexibilities.

Background

Scottish Local Government Finance Statistics (SLGFS) 2023-24 is based on final, audited figures provided by local authorities (where available, or draft accounts if these have not yet been audited).

Further information on Local Government Finance statistics publications and data collections can be found on the Scottish Government website.

These statistics have been produced in accordance with the Code of Practice for Statistics.

MIL OSI United Kingdom –

February 4, 2025

MIL-OSI: Dassault Systèmes: Strong Q4 results driven by new business acceleration and expanded 3DEXPERIENCE footprint

Source: GlobeNewswire (MIL-OSI)

Press Release

VELIZY-VILLACOUBLAY, France — February 4, 2025

Dassault Systèmes: Strong Q4 results driven by new business acceleration and expanded 3DEXPERIENCE footprint

Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) today reports its IFRS unaudited estimated financial results for the fourth quarter 2024 and full year ended December 31, 2024. The Group’s Board of Directors approved these estimated results on February 3, 2025. This press release also includes financial information on a non-IFRS basis and reconciliations with IFRS figures in the Appendix.

Summary Highlights¹

(unaudited, non-IFRS unless otherwise noted,
all growth rates in constant currencies)

4Q24: Software revenue accelerated to 9% growth;
4Q24: Top line acceleration driven by new business growth of 13% and 3DEXPERIENCE software revenue up 22%;
4Q24: Operating margin stood at 36.3%, an increase of 70 basis points, with diluted EPS of €0.40, up 11%;
FY24: Total revenue grew to €6.21 billion with software revenue up 6%, operating margin of 31.9% and diluted EPS of €1.28, up 9%;
Initiating guidance for FY25: total revenue growth expected between 6% and 8%, operating margin between 32.6% and 32.9%, up 70-100 basis points, and diluted EPS of €1.36-€1.39;
Revealing 3D UNIV+RSES and their AI-based services.

Dassault Systèmes’ Chief Executive Officer Commentary

Pascal Daloz, Dassault Systèmes’ Chief Executive Officer, commented:

“2024 has been a year of competitive success, driven by the expansion of 3DEXPERIENCE across industries, domains and geographies, and redefining our strategic partnerships with industry leaders such as Volkswagen, Lockheed Martin, Mahindra & Mahindra, Airbus, and Bristol-Myers Squibb.

Key to this success is the relevance of 3DEXPERIENCE combining deep industry knowledge and know-how to help customers enhance their value propositions and empower their teams. This will nurture our future growth and build the foundation for broad cloud adoption.

Building on this strong foundation, we are excited to announce a new era for Dassault Systèmes. We are fully committed to creating UNIV+RSES, a combination of multiple virtual twins, integrating artificial intelligence to connect virtual and real, across all industry solutions. This will unlock new opportunities for our clients and position us as the trusted Global IP Generation and Management Company.”

Dassault Systèmes’ Chief Financial Officer Commentary

(revenue, operating margin and diluted EPS (‘EPS’) growth rates in constant currencies,
data on a non-IFRS basis)

Rouven Bergmann, Dassault Systèmes’ Chief Financial Officer, commented:

“We delivered a strong Q4 in the context of a challenging year, with total revenue up 7%, driven by new business growth of 13% in the quarter. From a product line perspective, this performance was led by Industrial Innovation, up 8%, as a result of the wider adoption of 3DEXPERIENCE, with a focus on manufacturing. At the same time, we saw continued excellent performance in Mainstream Innovation while in Life Sciences, MEDIDATA returned to growth.

Turning to the bottom line, profitability improved in the quarter with an operating margin of 36.3%, up 70 basis points driven by productivity gains, and EPS increased by a strong 11%.

For 2024, software revenue growth was 6% and EPS grew by 9%. Operating cash flow came in at €1.66 billion resulting in a net cash position of €1.46 billion, highlighting our capacity for future investments.

Looking ahead, we are confident in our growth outlook and competitive positioning.

As such, for 2025 we anticipate total revenue growth between 6% and 8%, operating margin expansion of 70-100 basis points and EPS up 7% to 10%.

Lastly, we are delighted to hold our Capital Markets Day this coming June, at our headquarters in Paris where it will be the opportunity to discuss our vision for the next horizon.”

Financial Summary

In millions of Euros, except per share data and percentages	IFRS				IFRS
In millions of Euros, except per share data and percentages	Q4 2024	Q4 2023	Change	Change in constant currencies	YTD 2024	YTD 2023	Change	Change in constant currencies
Total Revenue	1,754.2	1,643.4	7%	7%	6,213.6	5,951.4	4%	5%
Software Revenue	1,601.5	1,476.1	8%	9%	5,613.3	5,360.0	5%	6%
Operating Margin	27.6%	23.2%	+4.3pts		21.9%	20.9%	+1.0pt
Diluted EPS	0.30	0.25	20%		0.90	0.79	14%

In millions of Euros, except per share data and percentages	Non-IFRS				Non-IFRS
In millions of Euros, except per share data and percentages	Q4 2024	Q4 2023	Change	Change in constant currencies	YTD 2024	YTD 2023	Change	Change in constant currencies
Total Revenue	1,754.2	1,643.4	7%	7%	6,213.6	5,951.4	4%	5%
Software Revenue	1,601.5	1,476.1	8%	9%	5,613.3	5,360.0	5%	6%
Operating Margin	36.3%	35.9%	+0.4pt		31.9%	32.4%	(0.4)pt
Diluted EPS	0.40	0.36	9%	11%	1.28	1.20	7%	9%

Fourth Quarter 2024 Versus 2023 Financial Comparisons

(unaudited, IFRS and non-IFRS unless otherwise noted,
all revenue growth rates in constant currencies)

Total Revenue: Total revenue in the fourth quarter grew by 7% to €1.75 billion, and software revenue increased by 9% to €1.60 billion. Subscription & support revenue rose 7%; recurring revenue represented 75% of software revenue. Licenses and other software revenue increased by 15% to €405 million. Services revenue was down 9% to €153 million, during the quarter.
Software Revenue by Geography: Revenue in the Americas increased by 5% to represent 37% of software revenue, led by Aerospace & Defense. Europe (43% of software revenue) grew by 14%, thanks to large deals closed in Aerospace & Defense and Home & Lifestyle. In Asia, revenue increased by 7%, led by Japan and India, while China remained volatile. Asia represented 20% of software revenue at the end of the fourth quarter.
Software Revenue by Product Line:
- Industrial Innovation software revenue increased by 8% to €902 million, driven by strong momentum with 3DEXPERIENCE wins and many strategic competitive displacements, led by DELMIA in manufacturing. Industrial Innovation software represented 56% of software revenue.
- Life Sciences software revenue was flat, at €298 million, accounting for 19% of software revenue. MEDIDATA returned to growth, up 1% in the quarter, highlighting progressive improvement.
- Mainstream Innovation software revenue increased by 17% to €402 million, with SOLIDWORKS achieving its best quarter since 2022 and CENTRIC PLM maintaining strong momentum. Mainstream Innovation represented 25% of software revenue, during the period.

Software Revenue by Industry: Aerospace & Defense, Home & Lifestyle and Industrial Equipment were among the best performers during the quarter.
Key Strategic Drivers: 3DEXPERIENCE software revenue increased by 22% thanks to major deals signings in Aerospace & Defense and Transport & Mobility. 3DEXPERIENCE software revenue represented 46% of 3DEXPERIENCE eligible software revenue. Cloud software revenue grew by 6% and represented 22% of software revenue during the period. Excluding MEDIDATA, Cloud software revenue increased by 19%.
Operating Income and Margin: IFRS operating income rose by 27% at €483 million, as reported. Non-IFRS operating income increased by 9% in constant currencies at €637 million (up 8% as reported). The IFRS operating margin stood at 27.6% compared to 23.2% in the fourth quarter of 2023. The non-IFRS operating margin totaled 36.3% versus 35.9% during the same period last year, up 70 basis points in constant currencies.
Earnings per Share: IFRS diluted EPS was €0.30, up 20% as reported. Non-IFRS diluted EPS grew to €0.40, up 9% as reported, or 11% in constant currencies.

Fiscal 2024 Versus 2023 Financial Comparisons

(unaudited, IFRS and non-IFRS unless otherwise noted,
all revenue growth rates in constant currencies)

Total Revenue: Total revenue grew by 5% to €6.21 billion. Software revenue increased by 6% to €5.61 billion. Subscription and support revenue rose to €4.49 billion up 6%; recurring revenue represented 80% of total software revenue. Licenses and other software revenue grew by 4% to €1.13 billion. Services revenue came at €600 million, up 2%.
Software Revenue by Geography: The Americas increased by 4% and represented 39% of software revenue. Europe rose by 6% and represented 38% of software revenue. Asia grew by 9%, representing 22% of software revenue.
Software Revenue by Product Line:
- Industrial Innovation software revenue was up 5% to €3.02 billion and represented 54% of software revenue. DELMIA, ENOVIA and SIMULIA exhibited the strongest performance.

Life Sciences software revenue decreased by 1% to €1.14 billion, representing 20% of software revenue.
Mainstream Innovation software revenue increased by 13% to €1.45 billion. Mainstream Innovation represented 26% of software revenue.

Software Revenue by Industry: Home & Lifestyle, Aerospace and Defense, High-Tech and Industrial equipment displayed some of the strongest performance.
Key Strategic Drivers: 3DEXPERIENCE software revenue increased by 14%, representing 39% of 3DEXPERIENCE eligible software revenue. Cloud software revenue grew by 7% and represented 24% of software revenue. Excluding MEDIDATA, Cloud software revenue increased by more than 40% versus last year.
Operating Income and Margin: IFRS operating income increased by 9% to €1.36 billion, as reported. Non-IFRS operating income increased by 3% as reported, up 4% in constant currencies, to €1.98 billion. IFRS operating margin totaled 21.9% compared to 20.9% in 2023. The non-IFRS operating margin stood at 31.9% in 2024 compared to 32.4% last year.
Earnings per Share: IFRS diluted EPS was up 14% as reported, to €0.90. Non-IFRS diluted EPS grew by 7% to €1.28, as reported, up 9% in constant currencies.
Cash Flow from Operations (IFRS): Cash flow from operations totaled €1.66 billion, up 6% year over year at reported rate with strong cash conversion and good cash collection, offset by receivables up on higher business activity in the fourth quarter.
Balance Sheet (IFRS): Dassault Systèmes had a net cash position of €1.46 billion as of December 31, 2024, an increase of €0.88 billion, compared to €0.58 billion for the year ending December 31, 2023. Cash and cash equivalents totaled €3.95 billion at the end of December 2024. The movements of the year on cash and cash equivalents include the reimbursement for €700 million of the second tranche of the bond issued by the company in 2019.

Financial Objectives for 2025

Dassault Systèmes’ first quarter and 2025 financial objectives presented below are given on a non-IFRS basis and reflect the principal 2025 currency exchange rate assumptions for the US dollar and Japanese yen as well as the potential impact from additional non-Euro currencies:


		Q1 2025	FY 2025
Total Revenue (billion)		€1.535 – €1.601	€6.550 – €6.650
Growth		2 – 7%	5 – 7%
Growth ex FX		3 – 8%	6 – 8%

Software revenue growth *		3 – 8%	6 – 8%
	Of which licenses and other software revenue growth *	0 – 9%	3 – 5%
	Of which recurring revenue growth *	4 – 8%	7 – 9%
Services revenue growth *		0 – 4%	3 – 6%

Operating Margin		31.0% – 31.1%	32.6% – 32.9%

EPS Diluted		€0.30 – €0.32	€1.36 – €1.39
Growth		2 – 6%	6 – 8%
Growth ex FX		3 – 7%	7 – 10%

US dollar		$1.10 per Euro	$1.10 per Euro
Japanese yen (before hedging)		JPY 155.0 per Euro	JPY 155.0 per Euro
* Growth in Constant Currencies

These objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.

The 2025 non-IFRS financial objectives set forth above do not take into account the following accounting elements below and are estimated based upon the 2025 principal currency exchange rates above: no significant contract liabilities write-downs; share-based compensation expenses, including related social charges, estimated at approximately €161 million (these estimates do not include any new stock option or share grants issued after December 31, 2024); amortization of acquired intangibles and of tangibles reevaluation, estimated at approximately €336 million, largely impacted by the acquisition of MEDIDATA; and lease incentives of acquired companies at approximately €2 million.

The above objectives also do not include any impact from other operating income and expenses, a net principally comprised of acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; from one-time items included in financial revenue; from one-time tax effects; and from the income tax effects of these non-IFRS adjustments. Finally, these estimates do not include any new acquisitions or restructuring completed after December 31, 2024.

Corporate Announcements

Today’s Webcast and Conference Call Information

Today, Tuesday, February 4, 2025, Dassault Systèmes will host, from Paris, a webcasted presentation at 9:00 AM London Time / 10:00 AM Paris time, and will then host a conference call at 8:30 AM New York time / 1:30 PM London time / 2:30 PM Paris time. The webcasted presentation and conference calls will be available online by accessing investor.3ds.com.

Additional investor information is available at investor.3ds.com or by calling Dassault Systèmes’ Investor Relations at +33.1.61.62.69.24.

Investor Relations Events

First Quarter 2025 Earnings Release: April 24, 2025
Second Quarter 2025 Earnings Release: July 24, 2025
Third Quarter 2025 Earnings Release: October 23, 2025

Forward-looking Information

Statements herein that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the Group’s non-IFRS financial performance objectives are forward-looking statements. Such forward-looking statements are based on Dassault Systèmes management’s current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to a range of factors.

The Group’s actual results or performance may be materially negatively affected by numerous risks and uncertainties, as described in the “Risk Factors” section 1.9 of the 2023 Universal Registration Document (‘Document d’enregistrement universel’) filed with the AMF (French Financial Markets Authority) on March 18, 2024, available on the Group’s website www.3ds.com.

In particular, please refer to the risk factor “Uncertain Global Economic Environment” in section 1.9.1.1 of the 2023 Universal Registration Document set out below for ease of reference:

“In light of the uncertainties regarding economic, business, social, health and geopolitical conditions at the global level, Dassault Systèmes’ revenue, net earnings and cash flows may grow more slowly, whether on an annual or quarterly basis, mainly due to the following factors:

the deployment of Dassault Systèmes’ solutions may represent a large portion of a customer’s investments in software technology. Decisions to make such an investment are impacted by the economic environment in which the customers operate. Uncertain global geopolitical, economic and health conditions and the lack of visibility or the lack of financial resources may cause some customers, e.g. within the automotive, aerospace, energy or natural resources industries, to reduce, postpone or terminate their investments, or to reduce or not renew ongoing paid maintenance for their installed base, which impact larger customers’ revenue with their respective sub-contractors;
the political, economic and monetary situation in certain geographic regions where Dassault Systèmes operates could become more volatile and impact Dassault Systèmes’ business, for example, due to stricter export compliance rules or the introduction of new customs tariffs;
continued pressure or volatility on raw materials and energy prices could also slow down Dassault Systèmes’ diversification efforts in new industries;
uncertainties regarding the extent and duration of inflation could adversely affect the financial position of Dassault Systèmes; and
the sales cycle of Dassault Systèmes’ products – already relatively long due to the strategic nature of such investments for customers – could further lengthen.

The occurrence of crises – health and political in particular – could have consequences both for the health and safety of Dassault Systèmes’ employees and for the Company. It could also adversely impact the financial situation or financing and supply capabilities of Dassault Systèmes’ existing and potential customers, commercial and technology partners, some of whom may be forced to temporarily close sites or cease operations. A deteriorating economic environment could generate increased price pressure and affect the collection of receivables, which would negatively impact Dassault Systèmes’ revenue, financial performance and market position.

Dassault Systèmes makes every effort to take into consideration this uncertain macroeconomic outlook. Dassault Systèmes’ business results, however, may not develop as anticipated. Furthermore, due to factors affecting sales of Dassault Systèmes’ products and services, there may be a substantial time lag between an improvement in global economic and business conditions and an upswing in the Company’s business results.

In preparing such forward-looking statements, the Group has in particular assumed an average US dollar to euro exchange rate of US$1.10 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY155.0 to €1.00, before hedging for the first quarter 2025. The Group has assumed an average US dollar to euro exchange rate of US$1.10 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY155.0 to €1.00, before hedging for the full year 2025. However, currency values fluctuate, and the Group’s results may be significantly affected by changes in exchange rates.

Non-IFRS Financial Information

Readers are cautioned that the supplemental non-IFRS financial information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered in isolation from or as a substitute for IFRS measurements. The supplemental non-IFRS financial information should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with IFRS. Furthermore, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Specific limitations for individual non-IFRS measures are set forth in the Company’s 2024 Universal Registration Document filed with the AMF on March 18, 2024.

In the tables accompanying this press release the Group sets forth its supplemental non-IFRS figures for revenue, operating income, operating margin, net income and diluted earnings per share, which exclude the effect of adjusting the carrying value of acquired companies’ deferred revenue, share-based compensation expense and related social charges, the amortization of acquired intangible assets and of tangibles reevaluation, certain other operating income and expense, net, including impairment of goodwill and acquired intangibles, the effect of adjusting lease incentives of acquired companies, certain one-time items included in financial revenue and other, net, and the income tax effect of the non-IFRS adjustments and certain one-time tax effects. The tables also set forth the most comparable IFRS financial measure and reconciliations of this information with non-IFRS information.

FOR MORE INFORMATION

Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

ABOUT DASSAULT SYSTÈMES

Dassault Systèmes is a catalyst for human progress. Since 1981, the company has pioneered virtual worlds to improve real life for consumers, patients and citizens. With Dassault Systèmes’ 3DEXPERIENCE platform, 350,000 customers of all sizes, in all industries, can collaborate, imagine and create sustainable innovations that drive meaningful impact. For more information, visit www.3ds.com

Dassault Systèmes Investor Relations Team FTI Consulting

Beatrix Martinez: +33 1 61 62 40 73 Arnaud de Cheffontaines: +33 1 47 03 69 48

Jamie Ricketts : +44 20 3727 1600

investors@3ds.com

Dassault Systèmes Press Contacts

Corporate / France Arnaud MALHERBE

arnaud.malherbe@3ds.com

+33 (0)1 61 62 87 73

© Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the 3DS logo, the Compass icon, IFWE, 3DEXCITE, 3DVIA, BIOVIA, CATIA, CENTRIC PLM, DELMIA, ENOVIA, GEOVIA, MEDIDATA, NETVIBES, OUTSCALE, SIMULIA and SOLIDWORKS are commercial trademarks or registered trademarks of Dassault Systèmes, a European company (Societas Europaea) incorporated under French law, and registered with the Versailles trade and companies registry under number 322 306 440, or its subsidiaries in the United States and/or other countries. All other trademarks are owned by their respective owners. Use of any Dassault Systèmes or its subsidiaries trademarks is subject to their express written approval.

APPENDIX TABLE OF CONTENTS

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Glossary of Definitions

Non-IFRS Financial Information

Acquisitions and Foreign Exchange Impact

Condensed consolidated statements of income

Condensed consolidated balance sheet

Condensed consolidated cash flow statement

IFRS – non-IFRS reconciliation

DASSAULT SYSTÈMES – Glossary of Definitions

Information in Constant Currencies

Dassault Systèmes has followed a long-standing policy of measuring its revenue performance and setting its revenue objectives exclusive of currency in order to measure in a transparent manner the underlying level of improvement in its total revenue and software revenue by activity, industry, geography and product lines. The Group believes it is helpful to evaluate its growth exclusive of currency impacts, particularly to help understand revenue trends in its business. Therefore, the Group provides percentage increases or decreases in its revenue and expenses (in both IFRS as well as non-IFRS) to eliminate the effect of changes in currency values, particularly the U.S. dollar and the Japanese yen, relative to the euro. When trend information is expressed “in constant currencies”, the results of the “prior” period have first been recalculated using the average exchange rates of the comparable period in the current year, and then compared with the results of the comparable period in the current year.

While constant currency calculations are not considered to be an IFRS measure, the Group believes these measures are critical to understanding its global revenue results and to compare with many of its competitors who report their financial results in U.S. dollars. Therefore, Dassault Systèmes includes this calculation for comparing IFRS revenue figures as well non-IFRS revenue figures for comparable periods. All information at constant exchange rates is expressed as a rounded percentage and therefore may not precisely reflect the absolute figures.

Information on Growth excluding acquisitions (“organic growth”)

In addition to financial indicators on the entire Group’s scope, Dassault Systèmes provides growth excluding acquisitions effect, also named organic growth. In order to do so, the data relating to the scope is restated excluding acquisitions, from the date of the transaction, over a period of 12 months.

Information on Industrial Sectors

The Group provides broad end-to-end software solutions and services: its platform-based virtual twin experiences combine modeling, simulation, data science and collaborative innovation to support companies in the three sectors it serves, namely Manufacturing Industries, Life Sciences & Healthcare, and Infrastructure & Cities.

These three sectors comprise twelve industries:

Manufacturing Industries: Transportation & Mobility; Aerospace & Defense; Marine & Offshore; Industrial Equipment; High-Tech; Home & Lifestyle; Consumer Packaged Goods – Retail. In Manufacturing Industries, Dassault Systèmes helps customers virtualize their operations, improve data sharing and collaboration across their organization, reduce costs and time-to-market, and become more sustainable;
Life Sciences & Healthcare: Life Sciences & Healthcare. In this sector, the Group aims to address the entire cycle of the patient journey to lead the way toward precision medicine. To reach the broader healthcare ecosystem from research to commercial, the Group’s solutions connect all elements from molecule development to prevention to care, and combine new therapeutics, med practices, and Medtech;
Infrastructure & Cities: Infrastructure, Energy & Materials; Architecture, Engineering & Construction; Business Services; Cities & Public Services. In Infrastructure & Cities, the Group supports the virtualization of the sector in making its industries more efficient and sustainable, and creating desirable living environments.

Information on Product Lines

The Group’s product lines financial reporting include the following financial information:

Industrial Innovation software revenue, which includes CATIA, ENOVIA, SIMULIA, DELMIA, GEOVIA, NETVIBES, and 3DEXCITE brands;
Life Sciences software revenue, which includes MEDIDATA and BIOVIA brands;
Mainstream Innovation software revenue which includes its CENTRIC PLM and 3DVIA brands, as well as its 3DEXPERIENCE WORKS family which includes the SOLIDWORKS brand.

Starting from 2022, OUTSCALE became a brand of the Group, extending the portfolio of software applications. As the first sovereign and sustainable operator on the cloud, OUTSCALE enables governments and corporations from all sectors to achieve digital autonomy through a Cloud experience and with a world-class cyber governance.

GEOs

Eleven GEOs are responsible for driving development of the Company’s business and implementing its customer‑centric engagement model. Teams leverage strong networks of local customers, users, partners, and influencers.

These GEOs are structured into three groups:

the “Americas” group, made of two GEO’s;
the “Europe” group, comprising Europe, Middle East and Africa (EMEA) and made of four GEO’s;
the “Asia” group, comprising Asia and Oceania and made of five GEO’s.

3DEXPERIENCE Software Contribution

To measure the relative share of 3DEXPERIENCE software in its revenues, Dassault Systèmes uses the following ratio: for software revenue, the Group calculates the percentage contribution by comparing total 3DEXPERIENCE software revenue to software revenue for all product lines except SOLIDWORKS, MEDIDATA, CENTRIC PLM and other acquisitions (defined as “3DEXPERIENCE Eligible software revenue”).

Cloud revenue

Cloud revenues correspond to revenue generated through a catalog of cloud-based solutions, infrastructure as a service, cloud solution development and cloud managed services. They are delivered by Dassault Systèmes via a cloud infrastructure hosted by Dassault Systèmes, or by third party providers of cloud computing infrastructure services. These offerings are available through different deployment methods: Dedicated cloud, Sovereign cloud and International cloud. Cloud solutions are generally offered through subscriptions models or perpetual licenses with support and hosting services.

New business

New business is the combination of subscription revenue and licenses & other software revenue.

DASSAULT SYSTÈMES

NON-IFRS FINANCIAL INFORMATION

(unaudited; in millions of Euros, except per share data, percentages, headcount and exchange rates)

Non-IFRS key figures exclude the effects of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue), share-based compensation expense, including related social charges, amortization of acquired intangible assets and of tangible assets revaluation, lease incentives of acquired companies, other operating income and expense, net, including the acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets, certain one-time items included in financial loss, net, certain one-time tax effects and the income tax effects of these non-IFRS adjustments.

Comparable IFRS financial information and a reconciliation of the IFRS and non-IFRS measures are set forth in the separate tables within this Attachment.

In millions of Euros, except per share data, percentages, headcount and exchange rates	Non-IFRS reported
	Three months ended				Twelve months ended
	December 31, 2024	December 31, 2023	Change	Change in constant currencies	December 31, 2024	December 31, 2023	Change	Change in constant currencies
Total Revenue	€ 1,754.2	€ 1,643.4	7%	7%	€ 6,213.6	€ 5,951.4	4%	5%

Revenue breakdown by activity
Software revenue	1,601.5	1,476.1	8%	9%	5,613.3	5,360.0	5%	6%
Of which licenses and other software revenue	405.4	351.9	15%	15%	1,125.2	1,087.6	3%	4%
Of which subscription and support revenue	1,196.1	1,124.3	6%	7%	4,488.1	4,272.4	5%	6%
Services revenue	152.8	167.3	(9)%	(9)%	600.3	591.4	2%	2%

Software revenue breakdown by product line
Industrial Innovation	901.8	837.3	8%	8%	3,019.6	2,908.0	4%	5%
Life Sciences	297.7	295.1	1%	0%	1,144.2	1,158.9	(1)%	(1)%
Mainstream Innovation	402.0	343.7	17%	17%	1,449.4	1,293.2	12%	13%

Software Revenue breakdown by geography
Americas	595.0	566.7	5%	5%	2,214.7	2,141.9	3%	4%
Europe	685.0	601.1	14%	14%	2,150.4	2,027.3	6%	6%
Asia	321.4	308.4	4%	7%	1,248.1	1,190.8	5%	9%

Operating income	€ 636.8	€ 589.8	8%		€ 1,983.7	€ 1,925.6	3%
Operating margin	36.3%	35.9%			31.9%	32.4%

Net income attributable to shareholders	€ 530.7	€ 487.2	9%		€ 1,705.1	€ 1,597.9	7%
Diluted earnings per share	€ 0.40	€ 0.36	9%	11%	€ 1.28	€ 1.20	7%	9%

Closing headcount	26,026	25,573	2%		26,026	25,573	2%

Average Rate USD per Euro	1.07	1.08	(1)%		1.08	1.08	0%
Average Rate JPY per Euro	162.55	159.12	2%		163.85	151.99	8%

DASSAULT SYSTÈMES

ACQUISITIONS AND FOREIGN EXCHANGE IMPACT

(unaudited; in millions of Euros)

In millions of Euros	Non-IFRS reported			o/w growth at constant rate and scope	o/w change of scope impact at current year rate	o/w FX impact on previous year figures
In millions of Euros	December 31, 2024	December 31, 2023	Change	o/w growth at constant rate and scope	o/w change of scope impact at current year rate	o/w FX impact on previous year figures
Revenue QTD	1,754.2	1,643.4	110.9	111.8	0.6	(1.6)
Revenue YTD	6,213.6	5,951.4	262.2	302.0	2.2	(42.0)

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited; in millions of Euros, except per share data and percentages)

In millions of Euros, except per share data and percentages	IFRS reported
	Three months ended		Twelve months ended
	December 31,	December 31,	December 31,	December 31,
	2024	2023	2024	2023
Licenses and other software revenue	405.4	351.9	1,125.2	1,087.6
Subscription and Support revenue	1,196.1	1,124.3	4,488.1	4,272.4
Software revenue	1,601.5	1,476.1	5,613.3	5,360.0
Services revenue	152.8	167.3	600.3	591.4
Total Revenue	€ 1,754.2	€ 1,643.4	€ 6,213.6	€ 5,951.4
Cost of software revenue ⁽¹⁾	(134.1)	(124.9)	(498.5)	(453.9)
Cost of services revenue	(132.7)	(131.0)	(517.8)	(517.1)
Research and development expenses	(327.7)	(317.5)	(1,286.2)	(1,228.3)
Marketing and sales expenses	(456.6)	(429.3)	(1,704.3)	(1,624.5)
General and administrative expenses	(136.4)	(124.8)	(470.5)	(450.6)
Amortization of acquired intangible assets and of tangible assets revaluation	(87.5)	(94.9)	(361.6)	(378.9)
Other operating income and expense, net	4.2	(39.5)	(15.0)	(56.2)
Total Operating Expenses	(1,270.9)	(1,261.8)	(4,854.0)	(4,709.5)
Operating Income	€ 483.4	€ 381.6	€ 1,359.6	€ 1,241.9
Financial income (loss), net	22.9	27.8	118.4	59.0
Income before income taxes	€ 506.3	€ 409.4	€ 1,478.0	€ 1,300.9
Income tax expense	(95.4)	(79.1)	(279.9)	(250.7)
Net Income	€ 410.9	€ 330.3	€ 1,198.1	€ 1,050.2
Non-controlling interest	1.1	(0.3)	2.1	0.7
Net Income attributable to equity holders of the parent	€ 412.0	€ 330.0	€ 1,200.2	€ 1,050.9
Basic earnings per share	0.31	0.25	0.91	0.80
Diluted earnings per share	€ 0.30	€ 0.25	€ 0.90	€ 0.79
Basic weighted average shares outstanding (in millions)	1,312.7	1,314.1	1,313.3	1,315.1
Diluted weighted average shares outstanding (in millions)	1,330.0	1,336.6	1,333.4	1,336.8

⁽¹⁾ Excluding amortization of acquired intangible assets and of tangible assets revaluation.

IFRS reported	Three months ended December 31, 2024		Twelve months ended December 31, 2024
IFRS reported	Change ⁽²⁾	Change in constant currencies	Change ⁽²⁾	Change in constant currencies
Total Revenue	7%	7%	4%	5%
Revenue by activity
Software revenue	8%	9%	5%	6%
Services revenue	(9)%	(9)%	2%	2%
Software Revenue by product line
Industrial Innovation	8%	8%	4%	5%
Life Sciences	1%	0%	(1)%	(1)%
Mainstream Innovation	17%	17%	12%	13%
Software Revenue by geography
Americas	5%	5%	3%	4%
Europe	14%	14%	6%	6%
Asia	4%	7%	5%	9%

⁽²⁾ Variation compared to the same period in the prior year.

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED BALANCE SHEET

(unaudited; in millions of Euros)

In millions of Euros	IFRS reported
	December 31,	December 31,
	2024	2023
ASSETS
Cash and cash equivalents	3,952.6	3,568.3
Trade accounts receivable, net	2,120.9	1,707.9
Contract assets	30.1	26.8
Other current assets	464.0	477.1
Total current assets	6,567.6	5,780.1
Property and equipment, net	945.8	882.8
Goodwill and Intangible assets, net	7,687.1	7,647.0
Other non-current assets	345.5	312.5
Total non-current assets	8,978.3	8,842.3
Total Assets	€ 15,545.9	€ 14,622.5
LIABILITIES
Trade accounts payable	259.9	230.5
Contract liabilities	1,663.4	1,479.3
Borrowings, current	450.8	950.1
Other current liabilities	1,147.4	901.0
Total current liabilities	3,521.5	3,561.0
Borrowings, non-current	2,042.8	2,040.6
Other non-current liabilities	900.9	1,174.8
Total non-current liabilities	2,943.7	3,215.4
Non-controlling interests	14.1	11.9
Parent shareholders’ equity	9,066.6	7,834.1
Total Liabilities	€ 15,545.9	€ 14,622.5

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

(unaudited; in millions of Euros)

In millions of Euros	IFRS reported
	Three months ended			Twelve months ended
	December 31,	December 31,	Change	December 31,	December 31,	Change
	2024	2023	Change	2024	2023	Change
Net income attributable to equity holders of the parent	412.0	330.0	82.0	1,200.2	1,050.9	149.3
Non-controlling interest	(1.1)	0.3	(1.4)	(2.1)	(0.7)	(1.4)
Net income	410.9	330.3	80.6	1,198.1	1,050.2	147.9
Depreciation of property and equipment	49.7	44.0	5.7	191.9	182.4	9.4
Amortization of intangible assets	89.4	96.8	(7.4)	369.1	387.1	(18.0)
Adjustments for other non-cash items	(75.9)	(48.8)	(27.0)	37.7	74.7	(37.0)
Changes in working capital	(162.1)	(128.8)	(33.3)	(137.0)	(129.2)	(7.7)
Net Cash From Operating Activities	€ 312.0	€ 293.4	€ 18.6	€ 1,659.8	€ 1,565.2	€ 94.6

Additions to property, equipment and intangibles assets	(49.1)	(42.5)	(6.6)	(193.4)	(145.3)	(48.1)
Payment for acquisition of businesses, net of cash acquired	(4.2)	(0.5)	(3.8)	(22.5)	(16.1)	(6.4)
Other	0.3	0.1	0.1	24.1	(0.3)	24.4
Net Cash Provided by (Used in) Investing Activities	€ (53.1)	€ (42.9)	€ (10.2)	€ (191.7)	€ (161.6)	€ (30.1)

Proceeds from exercise of stock options	4.4	28.5	(24.1)	48.4	67.0	(18.6)
Cash dividends paid	–	0.0	(0.0)	(302.7)	(276.2)	(26.4)
Repurchase and sale of treasury stock	(0.5)	10.6	(11.1)	(374.0)	(375.4)	1.4
Capital increase	–	(0.0)	0.0	–	146.1	(146.1)
Acquisition of non-controlling interests	(0.0)	(0.1)	0.1	(3.3)	(0.9)	(2.4)
Proceeds from borrowings	–	0.0	(0.0)	200.2	20.3	179.9
Repayment of borrowings	(100.0)	0.1	(100.0)	(700.9)	(28.1)	(672.7)
Repayment of lease liabilities	(18.7)	(26.3)	7.7	(79.7)	(89.4)	9.7
Net Cash Provided by (Used in) Financing Activities	€ (114.8)	€ 12.7	€ (127.5)	€ (1,211.9)	€ (536.7)	€ (675.2)

Effect of exchange rate changes on cash and cash equivalents	150.8	(63.2)	213.9	128.2	(67.5)	195.7

Increase (decrease) in cash and cash equivalents	€ 294.9	€ 200.1	€ 94.8	€ 384.3	€ 799.3	€ (415.0)

Cash and cash equivalents at beginning of period	€ 3,657.7	€ 3,368.1		€ 3,568.3	€ 2,769.0
Cash and cash equivalents at end of period	€ 3,952.6	€ 3,568.3		€ 3,952.6	€ 3,568.3

DASSAULT SYSTÈMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data and percentages)

Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in the Group’s Document d’Enregistrement Universel for the year ended December 31, 2023 filed with the AMF on March 18, 2024. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group’s consolidated financial statements prepared in accordance with IFRS.

In millions of Euros, except per share data and percentages	Three months ended December 31,						Change
	2024	Adjustment⁽¹⁾	2024	2023	Adjustment⁽¹⁾	2023	IFRS	Non-IFRS⁽²⁾
	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Non-IFRS⁽²⁾
Total Revenue	€ 1,754.2	–	€ 1,754.2	€ 1,643.4	–	€ 1,643.4	7%	7%
Revenue breakdown by activity
Software revenue	1,601.5	–	1,601.5	1,476.1	–	1,476.1	8%	8%
Licenses and other software revenue	405.4	–	405.4	351.9	–	351.9	15%	15%
Subscription and Support revenue	1,196.1	–	1,196.1	1,124.3	–	1,124.3	6%	6%
Recurring portion of Software revenue	75%		75%	76%		76%
Services revenue	152.8	–	152.8	167.3	–	167.3	(9)%	(9)%
Software Revenue breakdown by product line
Industrial Innovation	901.8	–	901.8	837.3	–	837.3	8%	8%
Life Sciences	297.7	–	297.7	295.1	–	295.1	1%	1%
Mainstream Innovation	402.0	–	402.0	343.7	–	343.7	17%	17%
Software Revenue breakdown by geography
Americas	595.0	–	595.0	566.7	–	566.7	5%	5%
Europe	685.0	–	685.0	601.1	–	601.1	14%	14%
Asia	321.4	–	321.4	308.4	–	308.4	4%	4%
Total Operating Expenses	€ (1,270.9)	€ 153.4	€ (1,117.5)	€ (1,261.8)	€ 208.2	€ (1,053.6)	1%	6%
Share-based compensation expense and related social charges	(69.7)	69.7	–	(73.2)	73.2	–
Amortization of acquired intangible assets and of tangible assets revaluation	(87.5)	87.5	–	(94.9)	94.9	–
Lease incentives of acquired companies	(0.4)	0.4	–	(0.7)	0.7	–
Other operating income and expense, net	4.2	(4.2)	–	(39.5)	39.5	–
Operating Income	€ 483.4	€ 153.4	€ 636.8	€ 381.6	€ 208.2	€ 589.8	27%	8%
Operating Margin	27.6%		36.3%	23.2%		35.9%
Financial income (loss), net	22.9	1.1	24.0	27.8	1.0	28.8	(18)%	(17)%
Income tax expense	(95.4)	(33.2)	(128.6)	(79.1)	(51.3)	(130.4)	21%	(1)%
Non-controlling interest	1.1	(2.6)	(1.5)	(0.3)	(0.7)	(1.0)	N/A	53%
Net Income attributable to shareholders	€ 412.0	€ 118.7	€ 530.7	€ 330.0	€ 157.2	€ 487.2	25%	9%
Diluted Earnings Per Share ⁽³⁾	€ 0.30	€ 0.10	€ 0.40	€ 0.25	€ 0.12	€ 0.36	20%	9%

⁽¹⁾ In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and; (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.

In millions of Euros, except percentages	Three months ended December 31,								Change
In millions of Euros, except percentages	2024 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2024 Non-IFRS	2023 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2023 Non-IFRS	IFRS	Non- IFRS
Cost of revenue	(266.9)	5.0	0.1	(261.8)	(255.9)	3.6	0.2	(252.1)	4%	4%
Research and development expenses	(327.7)	18.2	0.2	(309.3)	(317.5)	28.5	0.3	(288.7)	3%	7%
Marketing and sales expenses	(456.6)	25.1	0.1	(431.4)	(429.3)	20.9	0.1	(408.3)	6%	6%
General and administrative expenses	(136.4)	21.4	0.0	(115.0)	(124.8)	20.2	0.0	(104.5)	9%	10%
Total		€ 69.7	€ 0.4			€ 73.2	€ 0.7

⁽²⁾ The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
⁽³⁾ Based on a weighted average 1,330.0 million diluted shares for Q4 2024 and 1,336.6 million diluted shares for Q4 2023, and, for IFRS only, a diluted net income attributable to the sharehorlders of € 394.7 million for Q4 2024 (€ 330.0 million for Q4 2023). The Diluted net income attributable to equity holders of the Group corresponds to the Net Income attributable to equity holders of the Group adjusted by the impact of the share-based compensation plans to be settled either in cash or in shares at the option of the Group.

DASSAULT SYSTÈMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data and percentages)

Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in the Group’s Document d’Enregistrement Universel for the year ended December 31, 2023 filed with the AMF on March 18, 2024. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group’s consolidated financial statements prepared in accordance with IFRS.

In millions of Euros, except per share data and percentages	Twelve months ended December 31,						Change
	2024	Adjustment⁽¹⁾	2024	2023	Adjustment⁽¹⁾	2023	IFRS	Non-IFRS⁽²⁾
	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Non-IFRS⁽²⁾
Total Revenue	€ 6,213.6		€ 6,213.6	€ 5,951.4	–	€ 5,951.4	4%	4%
Revenue breakdown by activity
Software revenue	5,613.3		5,613.3	5,360.0	–	5,360.0	5%	5%
Licenses and other software revenue	1,125.2	–	1,125.2	1,087.6	–	1,087.6	3%	3%
Subscription and Support revenue	4,488.1		4,488.1	4,272.4	–	4,272.4	5%	5%
Recurring portion of Software revenue	80%		80%	80%		80%
Services revenue	600.3	–	600.3	591.4	–	591.4	2%	2%
Software Revenue breakdown by product line
Industrial Innovation	3,019.6	–	3,019.6	2,908.0	–	2,908.0	4%	4%
Life Sciences	1,144.2	–	1,144.2	1,158.9	–	1,158.9	(1)%	(1)%
Mainstream Innovation	1,449.4	–	1,449.4	1,293.2	–	1,293.2	12%	12%
Software Revenue breakdown by geography
Americas	2,214.7		2,214.7	2,141.9	–	2,141.9	3%	3%
Europe	2,150.4	–	2,150.4	2,027.3	–	2,027.3	6%	6%
Asia	1,248.1	–	1,248.1	1,190.8	–	1,190.8	5%	5%
Total Operating Expenses	€ (4,854.0)	€ 624.2	€ (4,229.8)	€ (4,709.5)	€ 683.7	€ (4,025.8)	3%	5%
Share-based compensation expense and related social charges	(245.6)	245.6	–	(245.8)	245.8	–
Amortization of acquired intangible assets and of tangible assets revaluation	(361.6)	361.6	–	(378.9)	378.9	–
Lease incentives of acquired companies	(1.9)	1.9	–	(2.8)	2.8	–
Other operating income and expense, net	(15.0)	15.0	–	(56.2)	56.2	–
Operating Income	€ 1,359.6	€ 624.2	€ 1,983.7	€ 1,241.9	€ 683.7	€ 1,925.6	9%	3%
Operating Margin	21.9%		31.9%	20.9%		32.4%
Financial income (loss), net	118.4	3.2	121.6	59.0	29.3	88.2	101%	38%
Income tax expense	(279.9)	(117.0)	(396.8)	(250.7)	(164.1)	(414.8)	12%	(4)%
Non-controlling interest	2.1	(5.5)	(3.4)	0.7	(1.9)	(1.2)	190%	187%
Net Income attributable to shareholders	€ 1,200.2	€ 504.9	€ 1,705.1	€ 1,050.9	€ 546.9	€ 1,597.9	14%	7%
Diluted Earnings Per Share ⁽³⁾	€ 0.90	€ 0.38	€ 1.28	€ 0.79	€ 0.41	€ 1.20	14%	7%

⁽¹⁾ In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and; (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.

In millions of Euros, except percentages	Twelve months ended December 31,								Change
In millions of Euros, except percentages	2024 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2024 Non-IFRS	2023 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2023 Non-IFRS	IFRS	Non- IFRS
Cost of revenue	(1,016.3)	16.2	0.5	(999.5)	(971.0)	15.7	0.8	(954.4)	5%	5%
Research and development expenses	(1,286.2)	76.9	0.9	(1,208.4)	(1,228.3)	94.4	1.3	(1,132.6)	5%	7%
Marketing and sales expenses	(1,704.3)	80.8	0.3	(1,623.3)	(1,624.5)	73.6	0.5	(1,550.4)	5%	5%
General and administrative expenses	(470.5)	71.7	0.2	(398.7)	(450.6)	62.2	0.2	(388.3)	4%	3%
Total		€ 245.6	€ 1.9			€ 245.8	€ 2.8

⁽²⁾ The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
⁽³⁾ Based on a weighted average 1,333.4 million diluted shares for YTD 2024 and 1,336.8 million diluted shares for YTD 2023.

1 IFRS figures for 4Q24: total revenue at €1.75 billion, operating margin of 27.6% and diluted EPS at €0.30; IFRS figures for FY24: total revenue at €6.21 billion, operating margin of 21.9% and diluted EPS at €0.90.

Attachment

Dassault Systèmes: Strong Q4 results driven by new business acceleration and expanded 3DEXPERIENCE footprint

The MIL Network –

February 4, 2025

MIL-OSI: Amundi: Fourth quarter & Full-year 2024 results

Source: GlobeNewswire (MIL-OSI)

Amundi: Fourth quarter & Full-year 2024 results

Record 2024 net income^1,2at €1.4 billion

Results at the highest historical level		2024 adjusted net income¹^,² of €1,382m, up sharply: +13% vs. 2023 Thanks to Revenue growth (+9%) and improvement of the Cost-to-income ratio to 52.5%² Earnings per share²: €6.75 Q4 2024 – adjusted net income¹^,²€377m, up +20% Q4/Q4 Dividend proposed to the Annual General Meeting of 27 May 2025 at €4.25 per share

2024 net inflows multiplied by 2 compared to 2023		Assets under management³at a new record of €2,240bn at end-2024, +10% year-on-year Net inflows³+€55bn over the year, of which +€34bn in medium to long term assets excl. JVs Q4 net inflows +€20bn, incl. +€18bn in medium to long term assets, record ETF inflows: +€11bn Amundi Technology: strong revenue growth and acquisition of aixigo

Major advances of the plan Ambitions 2025		AuM targets achieved one year ahead of schedule for Third-Party Distribution and Passive Management Net income²: +6.1% average annual growth 2021-24, above the Ambitions 2025 target 2024 Cost/income ratio² already on 2025 target 3 value-creating external growth operations, in line with strategic and financial objectives ESG Ambitions 2025 plan on track

Paris, 4 February 2025
Amundi’s Board of Directors met on 3 February 2025 under the chairmanship of Philippe Brassac, and approved the financial statements for the fourth quarter and full year 2024.

Valérie Baudson, Chief Executive Officer, said:
“2024 was a record year for Amundi, both in terms of results and activity. Our net income has reached €1.4bn and our net inflows have doubled compared to 2023.
Our assets under management are at an all-time high, at more than €2.2tn, thanks to very dynamic inflows in several strategic areas, such as third-party distributors, ETFs and Asia. We have also confirmed and expanded our leading position in fixed income strategies. The success of our technological services offer was also strengthened.
Finally, we carried out three external growth operations. They accelerate our development and create value for our clients and shareholders.
This commercial performance translated into record results, both for the year and in the fourth quarter. Our cost/income ratio, at the best level in the industry, is already in line with our 2025 target. This strong financial performance allows us to propose an increased dividend, offering an attractive return for our shareholders.
2024 marks an acceleration of the diversification that was initiated with the plan Ambitions 2025, several objectives of which have already been achieved, one year ahead of schedule.
Close to our clients and attentive to their needs, we are very well positioned on the mega-trends of the savings industry. This makes us confident about our future growth. »

* * * * *

Accelerating diversification on industry mega-trends

In 2024, the strategic priorities of the plan Ambitions 2025 contributed significantly to the growth of activity and results. They ideally position Amundi on the key growth drivers of the savings industry.

Third-Party Distribution delivered strong growth in its assets under management, +27% year-on-year to €401bn at the end of December and at the objective of the plan Ambitions 2025, one year ahead of schedule; Third-Party Distribution now represents 57% of Retail segment’s assets under management; 2024 net inflows of +€32bn were at an all-time high, highly diversified across all regions and asset classes: +€5bn in active management, +€18bn in ETFs and +€9bn in treasury products; Q4 was the strongest quarter for inflows in history, at +€13bn, with the same dominance as for the year; 12 new partnerships with digital players were signed in 2024 (BourseDirect, Scalable, Moneyfarm, etc.), bringing to 45 the number of partnerships with this type of player, in Europe and Asia;
ETFs⁴ reached €268bn in assets under management at the end of December, up +30% year-on-year, driven by record net inflows of +€27.8bn for the year, including +€10.5bn in Q4, diversified by client segments and between equity and fixed income products; these inflows were driven by the success of the US and global equity ranges, in particular the S&P500 ETF, innovative products such as the Amundi MSCI US Mega Cap and ex Mega Cap, as well as the Amundi Prime All Country World UCIT ETF, which has gathered more than +€2bn in 9 months;
Asia saw its assets under management increase by +17% year-on-year, to €469bn, thanks to +€28bn in inflows in 2024, positive in the 9 countries where Amundi operates; the Indian JV SBI MF continued to grow (€292bn in assets under management, +23% year-on-year with +€20.6bn in net inflows), as well as direct distribution excluding JVs (€103bn in assets under management, +16% year-on-year, with 2024 net inflows of +€5bn); 2024 was marked by the success of the partnership with Standard Chartered and the launch of a range of “CIO Signature Funds”, with assets under management reaching $2bn managed on behalf of the bank’s clients in 11 countries, in Asia, the Middle East and Africa; finally, the contribution to net income from Asian JVs, at €123m, increased by +20.9%, particularly the Indian JV (+31.5%, at €104m);
Fixed income expertise now manages €1,190bn in assets under management⁵ via a very wide range of solutions, which we have adapted in the face of the variations in long-term rates over the year; these solutions gathered +€57.5bn⁵ in 2024, of which +€11.7bn⁵ in Q4, thanks to a wider range of strategies: Amundi remains, as in 2023, the leader in Europe for maturity funds and fixed income ETFs, and the success of the inflows extended in 2024 to short-term fixed income solutions, securitisation, euro credit or stable duration strategies;
technology revenues recorded a strong increase by +33.8% compared to 2023, to €80m, and +47.1% Q4/Q4; Amundi Technology completed in Q4 the acquisition of the European leader in Wealth Tech, aixigo, complementing the ALTO⁶ Wealth and Distribution platform with a modular offering recognised in the industry.

Objectives of the plan Ambitions 2025 achieved one year ahead of schedule

Major objectives were achieved by 2024 and Amundi’s financial results are higher than planned in the trajectory of the Plan Ambitions 2025:

assets under management targets have been or are close to being reached at the end of 2024, a year ahead of schedule, for third-party distributors (€401bn vs. the €400bn target), passive management (€418bn vs. €420bn) and even Asia (€469bn, at 6% of the €500bn target);
2024 cost income ratio² at 52,5%, is already on target for 2025 (less than 53%);
2024 net income², at €1,382m, shows an average annual growth rate (CAGR) of +6.1% compared to the reference 2021 net income⁷ of the Plan, above the target of +5%; even restated for the slight positive market effect between 2021 and 2024, it is above the target, at +5.5%;
for 2024, the proposed dividend of €4.25 per share corresponds to a payout ratio⁸of 67%, above the minimum target of the Medium-Term Plan (65%), as in 2022 and 2023;
the average dividend payout ratio over 2022-24, at 72%, corresponds to a distribution surplus of +€0.24bn over the period, to which are added three external transactions that also consumed the capital generated over the period to the tune of +€0.5bn; the surplus capital remaining available for acquisitions at the end of 2024 is above €1bn;
Amundi has achieved three external growth operations: the acquisition of the private assets multi-management specialist Alpha Associates, closed in April 2024, the partnership with the US asset manager Victory Capital, signed in July and expected to be completed towards the end of the first quarter of 2025, and finally the acquisition of the Wealth Tech aixigo, closed in November 2024; these three operations are in line with the strategic and financial objectives of the plan Ambitions 2025; they will generate by 2027E⁹ a combined accretion of earnings per share² of about +5% and a return on investment of around 12%;
finally, the extra-financial and climate commitments of the plan ESG Ambitions 2025 have been achieved or are on their way to being achieved:
- the share of ETFs (in number) meeting the ESG criteria¹⁰ of the SFDR regulation reached 37% at the end of 2024, compared to a target of 40% at the end of 2025;
- the number of companies with which we have engaged in shareholder dialogue on their climate transition plans has increased by +1,478 since 2021, compared to a target of +1,000 over 2021-25;
- Greenhouse gas emissions per employee fell by -62% compared to 2018 on scopes 1, 2, and 3, against a target of a -30% reduction.

Activity

A favourable market environment in the quarter as well as over the year

In the fourth quarter of 2024, the average level of equity markets¹¹ increased by +2.8% compared to the previous quarter and by +19.5% compared to the same quarter of 2023. European bond markets¹²were also up, by +1.6% compared to the previous quarter and by +6.7% compared to the same quarter of 2023, reflecting the ECB’s rate cut decisions and the tightening of credit spreads. The market effect is therefore positive on the evolution of Amundi’s revenues over these two periods.

Compared to the 2021 averages reference for the Plan Ambitions 2025, the market effect is only very slightly positive.

The asset management market in Europe continued its recovery in the fourth quarter. Net inflows in open-ended funds¹³, at +€232bn, were driven by passive management (+€111bn) and by treasury products (+€74bn). For the third consecutive quarter, medium- to long-term active management recorded positive flows (+€46bn) driven by fixed income strategies (+€61bn).

Inflows at the highest level since 2021, more than double the 2023 net inflows, and new record for assets

Net inflows in the quarter amounted to +€20.5bn. For the year, net inflows reached +€55.4bn, twice the level of 2023.

Amundi’s assets under management³as of 31 December 2024 grew by +2.2% over the quarter and +10.0% over the year to reach a new record of €2,240bn. They benefited from market appreciation and from a high level of inflows, the highest since 2021. The market and currency effect amounted to +€28.1bn in the fourth quarter of 2024, and +€140.1bn in 2024. The increase in assets under management also benefited from the integration of Alpha Associates since the second quarter of 2024 (+€7.9bn in April).

Net inflows for the year amount to +€55.4bn, of which +€34bn in MLT assets¹⁴^,¹⁵. The last quarter is particularly dynamic, +€17.9bn, thus representing more than half of the MLT inflows¹⁴ of the year.

These MLT¹⁴ inflows continued this quarter to be driven by ETFs (+€10.5bn) and active management (+€5.5bn), notably through the active fixed income strategies (+€9.1bn). Also of note was a good performance in structured products, at +€0.9bn.

The rest of net inflows for the quarter came from treasury products (+€0.7bn) and JVs (+€1.9bn)

All client segments contributed to the positive net inflows:

the Retail segment, at +€11.5bn, recorded its highest level of inflows since 2021, thanks to Third-Party Distributors (+€12.7bn); Partner networks in France experienced net positive flows (+€0.8bn), compared to net outflows from International networks (-€1.4bn) and at Amundi BOC WM;
The Institutional segment, at +€7.1bn, of which +€10.8bn in MLT assets¹⁴, benefited from a strong contribution from Institutionals and Sovereigns (+€7.4bn) as well as CA & SG Insurers (+3,7€bn) in MLT assets¹⁴, and from Corporates (+€9.1bn) in treasury products;
JVs (+€1.9bn) continued to benefit from dynamic inflows from SBI MF in India (+€2.3bn).

It should be noted regarding SBI MF that the request for proposal, for the redeployment of the mandate of the Indian pension fund EPFO¹⁶ has been launched. A significant outflow is therefore likely to be expected in the second or third quarter of 2025, with a completely negligible effect on the revenues of the JV.

Fourth quarter and full-year 2024 results

Q4 2024: strong growth in net income², +20% Q4/Q4, highest quarter ever

Adjusted data²

In the fourth quarter of 2024, adjusted net income²reached €377m, up +20.5% compared to the fourth quarter of 2023.

It includes Alpha Associates, whose acquisition was finalised in early April, as well as aixigo for two months in the fourth quarter of 2024.

The growth in net income is mainly due to revenue growth and the very strong momentum of Asian JVs.

Adjusted net revenues² reached €924m, up +14.6% compared to the fourth quarter of 2023, mainly driven by management and technology revenues:

the sustained growth in net management fees, of +13.5% compared to the fourth quarter of 2023, to €820m, reflects the good level of activity and the increase in average assets under management excluding JVs (+10.5% over the same period);
performance fees (€57m) increased by +67.6% compared to the fourth quarter of 2023 (€34m), benefiting from the good performance of Amundi’s management teams, with more than 69% of assets under management ranked in the first or second quartiles according to Morningstar¹⁷ over 1, 3 or 5 years, and 247 Amundi funds rated 4 or 5 stars by Morningstar as of 31 December; fixed income strategies accounted for half of total performance fees, coming from very much diversified strategies;
Amundi Technology’s revenues, at €26m, continued to grow strongly (+47.1% compared to the fourth quarter of 2023), amplified this quarter by the first consolidation of aixigo for two months in the fourth quarter (+€5m);
finally, financial and other income² amounted to €21m, down from the fourth quarter of 2023 due to the impact of lower short-term rates in the euro area.

The increase in Operating expenses², by +13.1% compared to the fourth quarter of 2023, to €482m, remains lower than the increase in revenues (+14.6%) thus generating a positive jaws effect which reflects the Group’s operational efficiency.

This increase is explained by:

the first consolidation of Alpha Associates and aixigo;
investments in development initiatives of the plan Ambitions 2025, including technology, third-party distribution, Asia;
provisioning for individual variable remuneration, in line with the growth in results
non-recurring items, including the charge related to the discount proposed in the context of the capital increases of the Amundi and Crédit Agricole S.A. groups, which was reserved for Amundi’s employees;

Excluding these elements, the increase is in line with inflation (2.5%).

The Cost income ratio at 52,1% in adjusted data², improved from the same quarter last year.

The Adjusted gross operating income²(GOI) amounted to €443m, up +16,4% compared to the fourth quarter of 2023, reflecting revenue growth.

Income from equity-accounted companies¹⁸, at €29m, was up +1.6% compared to the fourth quarter of 2023. Growth was slowed by the impact of the decline in Indian equity markets on the financial income of our JV, SBI MF, which though continues to benefit from the strong growth of its business along the year.

Adjusted earnings per share²in the fourth quarter of 2024 reached €1.84, up +20,2%.

Accounting data in the fourth quarter of 2024

Accounting Net income Group share amounted to €349m, including non-cash expenses related to the acquisitions of Alpha Associates and aixigo, and the amortisation of intangible assets related to distribution contracts and client contracts, for a total of -€17m after tax. Integration costs related to aixigo and the partnership with Victory Capital, whose closing is expected towards the end of the first quarter 2025, were also recorded in the fourth quarter of 2024, for a total of -€10m after tax. In addition, depreciation and amortisation on adjustments to the value of intangible assets after the integration of aixigo were also recorded in operating expenses for -€1m after tax (see p. 12 for a detail of all these items).

Accounting earnings per share for the fourth quarter of 2024 reached €1.70.

2024: record net income

For the year 2024, the adjusted net income² amounts to €1,382m, up +13.0%.

This strong growth reflects the high level of activity:

Adjusted net revenues² have increased by +9,2% compared to 2023, to €3,497m, mainly driven by management revenues; net management fees increased by +8.3%, in line with the growth in average assets under management; the increase in performance fees (+17.3%) is explained by a very good performance of the management teams, particularly for active bond strategies; Amundi Technology’s revenues also grew strongly, by +33.8% to €80m with the ramp-up of revenues gained from the acquisition of 8 clients in 2024, and reinforced with the acquisition of aixigo for two months in 2024 (+€5m);
Net management fee margins were stable compared to 2023 at 17.7 basis points, as the positive effects of market appreciation and the client mix offset the unfavourable effect of the product mix;
Adjusted operating expenses² grew less than revenues, by +7.7% to €1,837m, generating a positive jaws effect; almost half of this increase was due to the consolidation of Alpha Associates and aixigo, investments in growth areas (technology, ETFs, third-party distribution, Asia, etc.) and higher provisions for variable compensation, in line with the increase in revenues;
the Adjusted cost income ratio² reached 52.5%, compared to 53.2% in 2023, at the best level and at the 2025 target.

The Adjusted gross operating income² (GOI) amounted to €1,660m, up +10,8% compared to 2023.

Income from equity-accounted companies¹⁸ accentuates this growth. At €123m, +20.9% compared to the full year of 2023, it grew faster than operating profit, mainly driven by India, whose contribution exceeded €100m (€104m) for the first time.

Adjusted earnings per share² reached €6.75 in 2024.

Accounting data for the year 2024

Accounting Net income Group share amounted to €1,305m, including non-cash expenses related to the acquisitions of Alpha Associates and aixigo and the amortisation of intangible assets related to distribution contracts and client contracts, for a total of -€67m after tax. Integration costs related to aixigo and the partnership with Victory Capital, whose closing is expected towards the end of the first quarter 2025, were also recorded in 2024, for a total of -€10m after tax. In addition, depreciation and amortisation on adjustments to the value of intangible assets after the integration of aixigo were also recorded in operating expenses for -€1m after tax (see p. 12 for a detail of all these items).

Accounting earnings per share for the year 2024 reached €6.37.

A solid financial structure and a dividend of €4.25 per share

Tangible net assets¹⁹ amounted to €4.5bn at 31 December 2024, up +€0.2bn or +4.5% compared to the end of 2023. This increase is in particular the result of the accounting net income for the year 2024 (+€1.4bn²⁰) the payment of dividends (-€0.8bn) for the 2023 financial year and the recognition of goodwill and intangible assets in respect of the two acquisitions finalised in 2024, Alpha Associates and aixigo (-€0.5bn).

On 5 September 2024, the FitchRatings rating agency confirmed Amundi’s long-term rating at A+ with a stable outlook, the best in the sector.

The Board of Directors will propose to the Annual General Meeting on 27 May 2025, a dividend of €4.25 per share, in cash, an increase compared to the dividend paid for the 2023 financial year.

This dividend corresponds to a payout ratio of 67% of net income Group share, and a yield of more than 6% based on the share price as of 31 January 2025 (closing price of €68).

The ex-dividend date will be Tuesday 10 June 2025 and will be paid as of Thursday 12 June 2025.

Since the listing in November 2015, the TSR²¹ (total shareholder return) has been +126%, i.e. +9.2% per year on average.

* * * * *

ANNEXES

Adjusted income statement²2024 and 2023

(€m)	2024	2023	% var. 2024/2023

Net revenuee – adjusted	3,497	3,204	+9.2%
Management fees	3,184	2,940	+8.3%
Performance fees	145	123	+17.3%
Technology	80	60	+33.8%
Financial income and other net income	88	80	+9.7%
Operating expenses – adjusted	(1,837)	( 1,706)	+7.7%
Cost income ratio – adjusted (%)	52.5%	53.2%	-0.7pp
Gross operating income – adjusted	1,660	1,498	+10.8%
Cost of risk & others	(10)	(8)	+28.7%
Equity-accounted companies	123	102	+20.9%
Income before tax – adjusted	1,774	1,592	+11.4%
Corporate taxes	(394)	(374)	+5.5%
Non-controlling interests	3	5	-43.5%
Net income, Group share – adjusted	1,382	1,224	+13.0%
Amortisation of intangible assets, after tax	(67)	(59)	+13.2%
Amortisation related to aixigo PPA, after tax	(1)	–	–
Integration costs, after tax	(10)	–	NS
Net income Group share	1,305	1,165	+12.0%
Earnings per share (€)	6.37	5.70	+11.7%
Earnings per share – adjusted(€)	6.75	5.99	+12.6%

Adjusted income statement²of the fourth quarter of 2024

(€m)	Q4 2024	Q4 2023	% var. Q4/Q4	Q3 2024	% var. Q4/Q3

Net revenue – adjusted	924	806	+14.6%	862	+7.3%
Management fees	820	723	+13.5%	805	+1.9%
Performance fees	57	34	+67.6%	20	NS
Technology	26	18	+47.1%	20	+32.6%
Financial income and other net income	21	32	-33.4%	17	+22.7%
Operating expenses – adjusted	(482)	(426)	+13.1%	(456)	+5.6%
Cost income ratio – adjusted (%)	52.1%	52,8%	-0.7pp	52.9%	-0.8pp
Gross operating income – adjusted	443	381	+16.4%	406	+9.1%
Cost of risk & others	(3)	(2)	+40.0%	(2)	+62.8%
Equity-accounted companies	29	29	+1.6%	33	-10.4%
Income before tax – adjusted	469	407	+15.2%	437	+7.4%
Corporate taxes	(93)	(96)	-3.9%	(101)	-7.8%
Non-controlling interests	1	2	-64.6%	1	-4.4%
Net income Group share – adjusted	377	313	+20.5%	337	+11.9%
Amortization of intangible assets after tax	(17)	(15)	+17.9%	(17)	-0.3%
Amortisation related to aixigo PPA after tax	(1)	–	–	–	–
Integration costs after tax	(10)	0	NS	0	NS
Net income, Group share	349	299	+17.0%	320	+9.3%
Earnings per share (€)	1.70	1.46	+16.7%	1.56	+9.0%
Earnings per share – adjusted (€)	1.84	1.53	+20.2%	1.65	+11.7%

Evolution of assets under management from the end of 2021 to the end of December 2024²²

(€bn)	*Assets* *under management*	*Net* *Inflows*	*Market &* *forex effect*	*Scope* *effect*			*Change in AuM* *vs. previous quarter*
As of 31/12/2021	2,064					+14%²³
Q1 2022		+3.2	-46.4		–
As of 31/03/2022	2,021					-2.1%
Q2 2022		+1.8	-97.75		–
As of 30/06/2022	1,925					-4.8%
Q3 2022		-12.9	-16.3		–
As of 30/09/2022	1,895					-1.6%
Q4 2022		+15.0	-6.2		–
As of 31/12/2022	1,904					+0.5%
Q1 2023		-11.1	+40.9		–
As of 31/03/2023	1,934					+1.6%
Q2 2023		+3.7	+23.8		–
As of 31/06/2023	1,961					+1.4%
Q3 2023		+13.7	-1.7		–
As of 30/09/2023	1,973					+0.6%
Q4 2023		+19.5	+63.8		-20
As of 31/12/2023	2,037					+3.2%
Q1 2024		+16.6	+63.0		–
As of 31/03/2024	2,116					+3.9%
Q2 2024		+15.5	+16.6		+8
30/06/2024	2,156					+1.9%
Q3 2024		+2.9	+32.5		–
30/09/2024	2,192					+1.6%
Q4 2024		+20.5	+28.1		–
31/12/2024	2,240					+2.2%

Total year-on-year from December 31, 2023 to December 31, 2024: +10.0%

Net inflows +€55.4bn
Market & foreign exchange rate effects +€140.1bn
Scope effects +€7.9bn
(First consolidation of Alpha Associates in Q2 2024, the acquisition of aixigo has no effect on assets under management)

Details of assets under management and net inflows by client segments²⁴

(€bn)	AuM 31.12.2024	AuM 31.12.2023	% change /31.12.2023	Inflows Q4 2024	Inflows Q4 2023	Inflows 2024	Inflows 2023
French networks	138	132	+4.7%	+0.8	+1.1	+1.1	+5.7
International networks	167	162	+3.0%	-2.1	-0.4	-6.5	-3.6
Of which Amundi BOC WM	2	3	-32.7%	-0.6	-0.4	-1.2	-3.7
Third-Party Distributors	401	317	+26.6%	+12.7	+0.5	+31.9	+4.6
Retail	706	611	+15.6%	+11.5	+1.1	+26.6	+6.8
Institutional & Sovereigns (*)	521	486	+7.2%	-0.7	-1.6	+0.7	+12.9
Corporates	122	111	+9.9%	+8.6	+10.1	+2.8	+2.7
Employee savings plan	90	86	+3.8%	+0.7	-0.7	+3.1	+1.9
CA & SG Insurers	429	427	+0.6%	-1.5	+4.3	-1.0	-5.4
Institutional	1,162	1,110	+4.7%	+7.1	+12.0	+5.6	+12.0
JVs	372	316	+17.7%	+1.9	+6.3	+23.3	+7.0
Total	2,240	2,037	+10.0%	+20.5	+19.5	+55.4	+25.8

Details of assets under management and net inflows by asset classes²⁴

(€bn)	AuM 31.12.2024	AuM 31.12.2023	% change /31.12.2023	Inflows Q4 2024	Inflows Q4 2023	Inflows 2024	Inflows 2023
Equity	544	467	+16.6%	+7.3	+0.1	+7.3	+2.2
Multi-assets	274	279	-1.8%	-0.9	-7.5	-23.2	-24.5
Bonds	747	656	+13.9%	+10.6	+7.4	+47.4	+17.6
Real, alternative & structured assets	114	107	+6.2%	+0.9	+1.9	+2.4	+4.3
MLT ASSETS excl. JVs	1,680	1,510	+11.3%	+17.9	+1.9	+34.0	-0.5
Treasury products excl. JVs	188	211	-10.9%	+0.7	+11.2	-1.8	+19.3
TOTAL excluding JVs	1,868	1,721	+8.6%	+18.5	+13.2	+32.2	+18.8
JVs	372	316	+17.7%	+1.9	+6.3	+23.3	+7.0
TOTAL	2,240	2,037	+10.0%	+20.5	+19.5	+55.4	+25.8
*Of which MLT assets*	*2,018*	*1,794*	*+12.5%*	*+21.1*	*+6.9*	*+56.0*	*+6.2*
*Of which treasury products*	*222*	*242*	*-8.6%*	*-0.6*	*+12.6*	*-0.5*	*+19.7*

Details of assets under management and net inflows by management types and asset classes²⁴

(€bn)	AuM 31.12.2024	AuM 31.12.2023	% change /31.12.2023	Inflows Q4 2024	Inflows Q4 2023	Inflows 2024	Inflows 2023
Active management	1,148	1,062	+8.1%	+5.5	-5.7	+7.6	-21.3
Equity	206	195	+5.6%	-2.5	-2.1	-7.9	-4.6
Multi-assets	263	270	-2.7%	-1.2	-7.8	-24.5	-26.0
Bonds	679	597	+13.8%	+9.1	+4.2	+40.1	+9.3
Structured products	44	39	+10.9%	+0.9	+2.8	+3.6	+5.6
Passive management	418	340	+22.9%	+11.5	+5.8	+23.9	+16.6
ETFs & ETC	268	207	+29.5%	+10.5	+5.0	+27.8	+13.0
Index & Smart beta	150	133	+12.7%	+1.0	+0.7	-3.9	+3.6
Real and Alternative Assets	70	68	+3.5%	-0.0	-0.9	-1.2	-1.3
Real assets	66	63	+5.4%	+0.1	-0.2	+0.0	-0.0
Alternative assets	4	5	-20.1%	-0.1	-0.7	-1.2	-1.3
TOTAL MLT assets excl. JVs	1,680	1,510	+11.3%	+17.9	+1.9	+34.0	-0.5
Treasury products excl. JVs	188	211	-10.9%	+0.7	+11.2	-1.8	+19.3
TOTAL excl. JVs	1,868	1,721	+8.6%	+18.5	+13.2	+32.2	+18.8
JVs	372	316	+17.7%	+1.9	+6.3	+23.3	+7.0
TOTAL	2,240	2,037	+10.0%	+20.5	+19.5	+55.4	+25.8

Details of assets under management and net inflows by geographic areas²⁴

(€bn)	AuM 31.12.2024	AuM 31.12.2023	% change /31.12.2023	Inflows Q4 2024	Inflows Q4 2023	Inflows 2024	Inflows 2023
France	994	950	+4.6%	+5.9	+11.6	+18.7	+10.4
Italy	202	203	-0.3%	-0.8	-2.1	-14.5	-4.3
Europe excl. France & Italy	440	372	+18.4%	+11.1	+2.9	+17.1	+8.9
Asia	469	400	+17.3%	-1.5	+7.5	+28.1	+7.2
Rest of the world	135	113	+20.0%	+5.7	-0.5	+6.1	+3.5
TOTAL	2,240	2,037	+10.0%	+20.5	+19.5	+55.4	+25.8
*TOTAL outside France*	*1,246*	*1,087*	*+14.7%*	*+14.6*	*+7.9*	*+36.8*	*+15.4*

Methodology appendix

Accounting & adjusted data

Accounting data – They include the amortisation of intangible assets, recorded as other income; since Q2 2024, other non-cash expenses spread according to the schedule of payments of the earn-out until the end of 2029; these expenses are booked as deductions from revenues, in financial costs, and since Q4, the amortisation charge of the technology asset related to the acquisition of aixigo, booked as amortisation of intangible assets in operating expenses.

Integration costs related to the transaction with Victory Capital and amortisation of the aixigo related PPA were recorded in the fourth quarter, in operating expenses, for a combined amount of -€14m pre-tax and -€11m after-tax. No costs of that nature were recorded in the first nine months of 2024 or in the 2023 financial year.

The aggregate amounts of these items are as follows for the different periods under review:

Q4 2023: -€20m before tax and -€15m after tax
2023: -€82m before tax and -€59m after tax
Q3 2024: -€24m pre-tax and -€17m after tax
Q4 2024: -€38m before tax and -€28m after tax
2024: -€106m before tax and -€77m after tax

Adjusted data – In order to present an income statement that is closer to economic reality, the following adjustments are made: restatement of the amortisation of distribution contracts with Bawag, UniCredit and Banco Sabadell, intangible assets representing client contracts of Lyxor and, since the second quarter of 2024, Alpha Associates, as well as other non-cash charges related to the acquisition of Alpha Associates; such depreciation and amortisation and non-cash expenses. are recorded as a deduction from net revenues; ; restatement of the amortisation of a technological asset related ot the acquisition of aixigo, recorded in operating expenses.

Acquisition of Alpha Associates

In accordance with IFRS 3, recognition of Amundi’s balance sheet as at 01/04/2024:

goodwill of €288m;
an intangible asset of €50m, representing client contracts, depreciable on a straight-line basis until the end of 2030;
a liability representing the conditional earn-out not yet paid, for €160m, including an actuarial discount of -€30m, which will be amortised over 6 years.

In the Group’s income statement, the following is recorded:

amortisation of intangible assets for a full-year expense of -€7.6m (-€6.1m after tax); in 2024 (9 months of integration) this corresponds to -€5.7m (-€4.6m after tax)
other non-cash expenses spread according to the schedule of payments of the earn-out until the end of 2029; these expenses are recorded as deductions from net income, as financial expenses; in 2024 (9 months) they represent -€4.3m (-€3.2m after tax).

Over twelve months 2024, these expenses and depreciation and amortisation are therefore -€10m before tax for 9 months. They only started in Q2.

In Q4 2024, the amortisation of intangible assets was -€1.9m before tax (-€1.5m after tax) and non-cash expenses were -€1.4m before tax (i.e. -€1.1m after tax).

Acquisition of aixigo

In accordance with IFRS 3, recognition on Amundi’s balance sheet at the date of acquisition:

goodwill of €121m;
a technology asset of €36m, representative of the goodwill attributed to aixigo’s software solutions, depreciable on a straight-line basis over 5 years;

The full-year amortisation charge of the technology asset was -€7.2m (-€4.8m after tax); in Q4 2024, the amortisation charge was -€1.2m (-€0.8m after tax), it is recognised in operating expenses.

Alternative Performance Measures²⁵

In order to present an income statement that is closer to economic reality, Amundi publishes adjusted data that excludes the depreciation of intangible assets and,

since the second quarter of 2024, from Alpha Associates, as well as other non-cash charges related to the acquisition of Alpha Associates.
Since the fourth quarter of 2024, the amortisation of intangible assets as operating expenses under aixigo.
In the fourth quarter of 2024, the integration costs on Victory Capital and aixigo.

Adjusted, normalised data are reconciled with accounting data as follows :

= accounting data

= adjusted data

(€M)	2024	2023	Q4 2024	Q4 2023	Q3 2024

Net management revenue	3,329	3,063	877	757	825
Technology	80	60	26	18	20
Net financial income and other net income	(3)	(1)	(2)	12	(6)
Adjusted net financial income and other income	88	80	21	32	17

Net revenue (a)	3,406	3,122	901	786	838
– Depreciation of intangible assets before tax	(87)	(82)	(22)	(20)	(22)
– Other non-cash expenses related to Alpha Associates	(4)	0	(1)	0	(1)
Net revenue – adjusted (b)	3,497	3,204	924	806	862

Operating expenses (c)	(1,852)	(1,706)	(496)	(426)	(456)
– Integration costs before tax	(13)	0	(13)	0	0
– Amortisation of the aixigo related PPA before tax	(1)	0	(1)	0	0
Operating expenses – adjusted (d)	(1,837)	(1,706)	(482)	(426)	(456)

Gross Operating Income (e)=(a)+(c)	1,554	1,416	405	360	382
Gross operating income – adjusted (f)=(b)+(d)	1,660	1,498	443	381	406
Cost income ratio (%) -(c)/(a)	54.4%	54.6%	55.1%	54.2%	54.4%
Cost income ratio – adjusted (%) -(d)/(b)	52.5%	53.2%	52.1%	52.8%	52.9%
Cost of risk & other (g)	(10)	(8)	(3)	(2)	(2)
Equity-accounted companies (h)	123	102	29	29	33
Income before tax (i)=(e)+(g)+(h)	1,668	1,511	431	387	413
Income before tax – adjusted (j)=(f)+(g)+(h)	1,774	1,592	469	407	437
Income tax (k)	(366)	(351)	(83)	(91)	(94)
Income tax – adjusted (l)	(394)	(374)	(93)	(96)	(101)
Non controlling interests (m)	3	5	1	2	1
Net income, Group share (n)=(i)+(k)+(m)	1,305	1,165	349	299	320
Net income, Group share – adjusted (o)=(j)+(l)+(m)	1,382	1,224	377	313	337

Earnings per share (€)	6.37	5.70	1.70	1.46	1.56
Adjusted earnings per share (€)	6.75	5.99	1.84	1.53	1.65

Shareholding

	31 December 2024		30 September 2024		31 December 2023
*(units)*	Number of shares	% of share capital	Number of shares	% of share capital	Number of shares	% of share capital
Crédit Agricole Group	141,057,399	68.67%	141,057,399	68.93%	141,057,399	68.93%
Employees	4,272,132	2.08%	2,751,891	1.34%	2,918,391	1.43%
Treasury shares	1,992,485	0.97%	958,031	0.47%	1,247,998	0.61%
Free Float	58,097,246	28.28%	59,880,313	29.26%	59,423,846	29.04%

Number of shares at the end of the period	205,419,262	100.0%	204,647,634	100.0%	204,647,634	100.0%
Average number of shares year-to-date	204,776,239	–	204,647,634	–	204,201,023	–
Average number of shares quarter-to-date	205,159,257	–	204,647,634	–	204,647,634	–

Average number of shares on a pro rata basis.

The average number of shares increased by +0.3% between Q3 2024 and Q4 2024, +0.3% between Q4 2023 and Q4 2024, and again +0.3% between 2023 and 2024.
A capital increase reserved for employees was recorded on 31 October 2024. 771,628 shares were created (approximately 0.4% of the share capital before the transaction).
Amundi announced on 7 October 2024 a buyback program of up to 1m shares (i.e. ~0.5% of the share capital before the transaction) to cover performance share plans, It was finalised on 27 November 2024.

Financial communication calendar

Q1 2025 earnings release: Tuesday 29 April 2025
Annual General Meeting: Tuesday 27 May 2025
Q2 and H1 2025 earnings release: Tuesday 29 July 2025
Q3 and 9-month 2025 results: Tuesday 28 October 2025

Dividend schedule

Ex-dividend day: Monday 10 June 2025
Payment: from Wednesday 12 June 2025

About Amundi

As Europe’s leading asset manager among the world’s top 10 players²⁶, Amundi offers its 100m clients – individuals, institutions and corporates – a full range of savings and investment solutions in active and passive management, in traditional and real assets. This offer is enriched with services and technological tools that cover the entire savings value chain. A subsidiary of the Crédit Agricole group, Amundi is listed on the stock exchange and currently manages more than €2.2tn in assets under management²⁷.

Its six international management platforms²⁸, its financial and extra-financial research capacity, as well as its long-standing commitment to responsible investment make it a leading player in the asset management landscape.

Amundi’s clients benefit from the expertise and advice of 5,700 professionals in 35 countries.

Amundi, a trusted partner that acts every day in the interest of its clients and society.

www.amundi.com

Press contacts:
Natacha Andermahr
Tel. +33 1 76 37 86 05
natacha.andermahr@amundi.com

Corentin Henry
Tel. +33 1 76 36 26 96
corentin.henry@amundi.com

Investor contacts:
Cyril Meilland, CFA
Tel. +33 1 76 32 62 67
cyril.meilland@amundi.com

Thomas Lapeyre
Tel. +33 1 76 33 70 54
thomas.lapeyre@amundi.com

Annabelle Wiriath

Tel. + 33 1 76 32 43 92

annabelle.wiriath@amundi.com

DISCLAIMER

This document does not constitute an offer or invitation to sell or purchase, or any solicitation of any offer to purchase or subscribe for, any securities of Amundi in the United States of America or in France. Securities may not be offered, subscribed or sold in the United States of America absent registration under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements thereof. The securities of Amundi have not been and will not be registered under the U.S. Securities Act and Amundi does not intend to make a public offer of its securities in the United States of America or in France.

This document may contain forward looking statements concerning Amundi’s financial position and results. The data provided do not constitute a profit “forecast” or “estimate” as defined in Commission Delegated Regulation (EU) 2019/980.

These forward-looking statements include projections and financial estimates based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context, assumptions regarding plans, objectives and expectations in connection with future events, transactions, products and services, and assumptions in terms of future performance and synergies. By their very nature, they are therefore subject to known and unknown risks and uncertainties, which could lead to their non-fulfilment. Consequently, no assurance can be given that these forward-looking statement will come to fruition, and Amundi’s actual financial position and results may differ materially from those projected or implied in these forward looking statements. In particular, conditions to completion of the announced transaction between Amundi and Victory Capital, may not be satisfied and such transaction may not be completed on schedule, or at all; risks relating to the expected benefits or impact of the transaction on Victory Capital’s and Amundi’s respective businesses are contained in their respective public filings.

Amundi undertakes no obligation to publicly revise or update any forward-looking statements provided as at the date of this document. Risks that may affect Amundi’s financial position and results are further detailed in the “Risk Factors” section of our Universal Registration Document filed with the French Autorité des Marchés Financiers. The reader should take all these uncertainties and risks into consideration before forming their own opinion.

The figures set out in this document were approved by Amundi’s Board of Directors and have been prepared in accordance with applicable prudential regulations and IFRS guidelines, as adopted by the European Union and applicable at that date, but remain subject to ongoing review by the statutory auditors.

Unless otherwise specified, sources for rankings and market positions are internal. The information contained in this document, to the extent that it relates to parties other than Amundi or comes from external sources, has not been verified by a supervisory authority or, more generally, subject to independent verification, and no representation or warranty has been expressed as to, nor should any reliance be placed on, the fairness, accuracy, correctness or completeness of the information or opinions contained herein. Neither Amundi nor its representatives can be held liable for any decision made, negligence or loss that may result from the use of this document or its contents, or anything related to them, or any document or information to which this document may refer.

The sum of values set out in the tables and analyses may differ slightly from the total reported due to rounding.

¹        Net income Group share
²        Adjusted data: see p. 12
³        Assets under management (AuM) and flows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of Asian JV’s assets and flows; for Wafa Gestion in Morocco, they are reported in proportion to Amundi’s holding in the capital of the JV
⁴        Excluding JVs
⁵        Including JV: €247bn in assets under management, +€12.2bn inflows in 2024 and +€0.6bn in Q4
⁶        ALTO: Amundi Leading Technologies & Operations, Amundi’s suite of 5 technology applications, including ALTO Investment, Wealth and Distribution, Sustainability, Asset Servicing and Employee Savings and Retirement
⁷        Adjusted net income Group share, normalised for the exceptionally high level of performance fees in the year: €1,158m
⁸        Calculated on accounting net income Group share
⁹        Compared to consensus estimates prior to these transactions
¹⁰        According to SFDR Articles 8 and 9
¹¹        50% MSCI World + 50% Eurostoxx 600 composite index for equity markets, average values over each period considered
¹²        Bloomberg Euro Aggregate for bond markets, average values over each reporting period
¹³        Source: Morningstar FundFile, ETFGI. European & cross-border open-ended funds (excluding mandates and dedicated funds). Data at the end of December 2024.
¹⁴        Medium-Long Term Assets excluding JV
¹⁵        However, 2024 net inflows include, for -€11.6bn, the exit in the third quarter of a multi-asset mandate with a European insurer, which brought low revenues
¹⁶        EPFO: Employees’ Provident Fund Organisation, India’s leading pension fund with total assets of €250bn at the end of December 2024. In Q4 2019, SBI MF had won a bond mandate granted by EPFO, for an amount of €60bn, which totaled €110bn in assets under management as of 31 December 2024; it is this mandate that would be shared with other managers according to the request for proposal
¹⁷        Source: Morningstar Direct, Broadridge FundFile – Open-ended funds and ETFs, global fund scope, December 2024; as a percentage of the assets under management of the funds in question; the number of Amundi open-ended funds rated by Morningstar was 1071 at the end of December 2024. © 2024 Morningstar, all rights reserved
¹⁸        Reflecting Amundi’s share of the net income of minority JVs in India (SBI MF), China (ABC-CA), South Korea (NH-Amundi) and Morocco (Wafa Gestion),
¹⁹        Shareholders’ equity less goodwill and intangible assets
²⁰        Excluding the amortisation of intangible assets
²¹        The TSR (Total Shareholder Return) includes the total return for a shareholder: increase in the share price + dividends paid from 2016 to 2024 + Preferential Subscription Rights detached in May 2017. Calculation made on the basis of the closing price of 31 January 2025, €68 per share.
²²        Assets under management and flows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of Asian JV’s assets and flows; for Wafa Gestion in Morocco, they are reported in proportion to Amundi’s holding in the capital of the JV
²³        Lyxor, integrated as of 31/12/2021
²⁴        Assets under management and flows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of Asian JV’s assets and flows; for Wafa Gestion in Morocco, they are reported in proportion to Amundi’s holding in the capital of the JV;
as of 01/01/2024, reclassification of short-term bond strategies (€30bn in AuM) as Bonds previously classified as Treasury until that date; the assets and net flows up to that date have not been reclassified in these tables
²⁵        See also the section 4.3 of the 2023 Universal Registration Document filed with the AMF on 18 April 2024
²⁶Source: IPE “Top 500 Asset Managers” published in June 2024 based on assets under management as of 31/12/2023
²⁷Amundi data as of 31/12/2024
²⁸Boston, Dublin, London, Milan, Paris and Tokyo

Attachment

Amundi_PR Results_Q4&FY2024_EN

The MIL Network –

February 4, 2025

MIL-Evening Report: Coalition’s tax-free lunch plan could cost $250 million or $10 billion – depending on who’s doing the sums

Source: The Conversation (Au and NZ) – By Dale Boccabella, Associate Professor of Taxation Law, UNSW Sydney

Rawpixel.com/Shutterstock

The 1980s are remembered for many things including power suits, the Ford Falcon and the long lunch.

The last was thanks to a generous interpretation of tax law as it applied to food and entertainment at “business meetings”. Bosses could deduct the cost of lunch with colleagues and contacts for tax purposes.

The Hawke government ended that when it made sweeping changes to tax law the mid 80s including the introduction of a fringe benefits tax.

But the long lunch might return under a Coalition government.

Its estimated cost to the budget, however, swings wildly. The Parliamentary Budget Office puts the figure at A$250 million, while a government-commissioned study by Treasury says it could be between $1.6 billion and $10 billion .

The different estimates result from varied modelling of how many businesses would seek the deduction and the average amount each would claim. Shadow treasurer Angus Taylor on Tuesday said it would cost less than $250 million. He said the Treasury estimates were “straight nonsense”.

Angus Taylor said Treasury’s estimates were “straight nonsense”
Mick Tsikas/AAP

The actual cost may also depend on whether the deduction would be limited to employees or could include spending on their family members and on clients. These things are not yet clear.

One thing that is clear, however, is higher spending at hospitality venues should bring in more tax from businesses to offset the lost deduction revenue.

Whatever rules emerge, enforcing them could be expensive. Some small businesses might be tempted to inflate their expenditure, or simply “reclassify” usual food and drink costs to make them eligible for a deduction.

Opposition leader Peter Dutton announced the plan late last month. He said small businesses could claim deductions for meals and entertainment. This would be available to businesses with a turnover under $10 million and excluded alcohol.

The deduction would be capped at $20,000 a year. The policy would run initially for two years and would presumably be reviewed with a view to extending it or making it permanent.

Dutton gave two reasons for reintroducing the exemption to the FBT. First, it was an incentive that would help retain and reward employees. Employees can get a “little bit of a return”, Dutton said at the time. Second, it would boost hospitality spending.

Overwhelmingly, this policy is an incentive for small businesses. However, tax policy experts argue the tax system should not use targeted tax breaks to promote a particular economic activity.

One major concern is this plan runs counter to the reasonably clear boundary our income tax system has established between private consumption expenditure (not deductible) and income producing expenditure (deductible).

The 1985 deduction denial for entertainment expenditure is a central part of this framework; it squarely recognised the private consumption character of the expenditure and it has stood for 40 years in tax law. Serious analysis should be done before changes are made.

Also, it might lead to claims of “what about me?” Think, for example, of a small business taxpayer with a turnover of $12 million who misses out. What about an independent contractor who falls short of being a business?

It looks like the technical way the tax deduction is to be achieved will depend on who benefits from the food and entertainment. If the beneficiary is a customer of the small business, the small business will be given a deduction. If the employee benefits, the small business will get an exemption for the benefit and obtain a deduction for the expenditure.

Peter Dutton said in his announcement last month the Coalition was doing this in a way to ensure small businesses “are not dragged into a complicated tax jungle”.

Fringe benefits tax is complicated and compliance costs are high.
Shakirov Albert/Shutterstock

The complexity of fringe benefits tax is well known. Compliance costs are high and mistakes are made by taxpayers and tax agents. The complexity is greatest for entertainment spending where income tax interacts with fringe benefits tax and the GST.

Without knowing the proposed rules, there is a chance a small business incurring entertainment expenditure can avoid being brought into a “tax jungle” if they keep employees and customers at separate entertainment events.

If they do combine the two, some complications arise, but they are not insurmountable. In any event, tax agents and their clients tend to get used to their specific situation over time. Excluding alcohol does add a slight complication, though, because of the different treatment it will attract.

Overall, the concerns about this policy are real and substantial. It is worth recalling that there are many examples of poor tax policy getting into legislation, and despite the significant evidence about them, they are not removed.

The capital gains tax discount is a good example. This discount has overwhelmingly delivered a tax break to high income earners. And the amount of the lost revenue is continually increasing. Let us think before running this risk with the proposed “long lunch” tax break.

Dale Boccabella does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Coalition’s tax-free lunch plan could cost $250 million or $10 billion – depending on who’s doing the sums – https://theconversation.com/coalitions-tax-free-lunch-plan-could-cost-250-million-or-10-billion-depending-on-whos-doing-the-sums-247999

MIL OSI Analysis – EveningReport.nz –

February 4, 2025

MIL-OSI Australia: New learning small business platform can help your NFP

Source: Australian Department of Revenue

The ATO’s small business online learning platform provides flexible and free courses to build knowledge for all stages of operating a business or organisation. NFPs share many tax obligations with small businesses, and the online learning is a valuable resource to help you avoid common mistakes and understand the tax and super obligations of your NFP better.

Essentials for your small businessExternal Link can enhance your knowledge of tax and super with a learning path tailored to support your NFP, at a time that is convenient for you. Key features of the learning platform include:

instructional videos and infographics
tailored options to access courses that are important to you
key information you can export to your personal device
bookmark options for courses or specific content that you can share.

You can also save your progress and jump back into a course when you’re ready again.

Some content that NFPs might find useful includes:

With over 20 short courses on offer, Essentials to strengthen your small business is likely to have a course that suits your NFP’s needs.

MIL OSI News –

February 4, 2025

MIL-OSI Australia: Don’t wait, lodge your NFP self-review return now

Source: Australian Department of Revenue

If your not-for-profit (NFP) organisation needs to lodge the NFP self-review return, don’t worry, there is still time for you to lodge.

Non-charitable NFPs with an active Australian business number (ABN) that self-assess as income tax exempt have until 31 March 2025 to lodge their 2023-24 return.

The return must be lodged to notify us of your NFP’s eligibility to self-assess as income tax exempt.

But before you lodge the return, it’s a good idea to check whether your organisation is ready to lodge. Our NFP self-review return – update, connect and lodge overview provides a step-by-step guide to setting up access to lodge your return online.

The guide is a great way to identify any action you need to take to ensure you have everything you need to lodge by the due date. It covers:

checking your NFP’s ABN details
setting up myID and linking it to Relationship Authority Manager (RAM)
reviewing your income tax exemption eligibility
lodgment options.

The NFP self-review return question guide is another great tool that lists all the questions in the return, so you can prepare your answers before lodging.

If you need more help with getting ready to lodge, there are plenty of useful tools and information available to help you understand the NFP self-review return and to prepare, including the NFP self-review return factsheet.

MIL OSI News –

February 4, 2025

MIL-OSI USA: Crapo, Wyden Announce Senate Finance Subcommittee Assignments

US Senate News:

Source: United States Senator for Idaho Mike Crapo

Washington, D.C.–Senate Finance Committee Chairman Mike Crapo (R-Idaho) and Ranking Member Ron Wyden (D-Oregon) today announced subcommittee assignments, Joint Committee on Taxation membership and the designation of members to serve as Congressional Trade Advisors for the 119^th Congress.

Subcommittee on Social Security, Pensions and Family Policy

Republicans

Chuck Grassley, IA, Chairman

Todd Young, IN

Marsha Blackburn, TN

Democrats

Bernard Sanders, VT

Catherine Cortez Masto, NV

Subcommittee on International Trade, Customs and Global Competitiveness

Republicans

John Cornyn, TX, Chairman

Chuck Grassley, IA

John Thune, SD

Tim Scott, SC

Steve Daines, MT

Todd Young, IN

Thom Tillis, NC

Roger Marshall, KS

Democrats

Raphael Warnock, GA

Michael Bennet, CO

Mark Warner, VA

Sheldon Whitehouse, RI

Catherine Cortez Masto, NV

Elizabeth Warren, MA

Tina Smith, MN

Subcommittee on Energy, Natural Resources and Infrastructure

Republicans

James Lankford, OK, Chairman

John Cornyn, TX

Tim Scott, SC

Steve Daines, MT

John Barrasso, WY

Roger Marshall, KS

Democrats

Maria Cantwell, WA

Michael Bennet, CO

Maggie Hassan, NH

Ben Ray Luján, NM

Peter Welch, VT

Subcommittee on Health Care

Republicans

Todd Young, IN, Chairman

John Thune, SD

Tim Scott, SC

Bill Cassidy, LA

James Lankford, OK

Steve Daines, MT

John Barrasso, WY

Ron Johnson, WI

Thom Tillis, NC

Marsha Blackburn, TN

Roger Marshall, KS

Democrats

Maggie Hassan, NH

Mark Warner, VA

Sheldon Whitehouse, RI

Catherine Cortez Masto, NV

Elizabeth Warren, MA

Bernard Sanders, VT

Tina Smith, MN

Ben Ray Luján, NM

Raphael Warnock, GA

Peter Welch, VT

Subcommittee on Taxation and IRS Oversight

Republicans

John Barrasso, WY, Chairman

Chuck Grassley, IA

John Cornyn, TX

John Thune, SD

Bill Cassidy, LA

James Lankford, OK

Ron Johnson, WI

Thom Tillis, NC

Marsha Blackburn, TN

Democrats

Michael Bennet, CO

Mark Warner, VA

Sheldon Whitehouse, RI

Maggie Hassan, NH

Elizabeth Warren, MA

Bernard Sanders, VT

Ben Ray Luján, NM

Raphael Warnock, GA

Subcommittee on Fiscal Responsibility and Economic Growth

Republicans

Ron Johnson, WI, Chairman

Bill Cassidy, LA

Democrats

Tina Smith, MN

Designation of Members to Serve on the Joint Committee on Taxation

Mike Crapo, ID

Chuck Grassley, IA

John Cornyn, TX

Ron Wyden, OR

Maria Cantwell, WA

Designation of Members to Serve as Congressional Trade Advisors on Trade Policy and Negotiations

Mike Crapo, ID

Chuck Grassley, IA

John Cornyn, TX

Ron Wyden, OR

Maria Cantwell, WA

The chairman and ranking member are ex officio members of all subcommittees.

The Rules of Procedure for the Senate Finance Committee are here.

MIL OSI USA News –

February 4, 2025

MIL-OSI USA: Reed Blasts Dangerous & Unprecedented Move by Trump Admin. That Puts U.S. Economy and National Security At Risk and Jeopardizes Americans’ Personal Data

US Senate News:

Source: United States Senator for Rhode Island Jack Reed

WASHINGTON, DC — Today, U.S. Senator Jack Reed (D-RI), the Ranking Member of the Senate Appropriations Financial Services and General Government (FSGG) Subcommittee, which oversees funding for the U.S. Department of Treasury, sounded the alarm that the Trump Administration is putting the U.S. economy and national security at risk; needlessly turning Americans’ sensitive personal information over to Tesla CEO Elon Musk, who also owns the social media platform known as X (formerly Twitter); and creating a pathway for the Trump Administration to potentially block payments to any individual or entity perceived as a political opponent of President Donald Trump.

Reed is seeking answers from new Treasury Secretary Scott Bessent following reports that he granted access to a highly sensitive Treasury Department payment system to personnel affiliated with Mr. Musk’s so-called Department of Government Efficiency (DOGE) taskforce.

In a letter, Reed urged Bessent: “To protect our national security and public confidence in our fiscal and economic system, you should immediately reverse this action.”

The U.S. Treasury’s federal payment system, which is maintained by non-political civil servants, disperses trillions of dollars each year, such as Social Security and Medicare benefits, defense spending and servicemember pay, interest on government bonds, tax refunds, federal grants, and nearly all other obligations owed by the government. No previous Treasury Secretary has ever allowed Treasury’s payment system and the goldmine of sensitive personal data it processes to be accessed by a partisan task force. Trump loyalists could use this information to illegally manipulate or operationally shut down individual U.S. government payments to any disfavored entity or perceived opposition of the President’s.

“Your actions have placed our national security at risk because unvetted individuals, potentially including foreign nationals, now have full access to these systems. According to press reports, these individuals include corporate executives of multinational companies with extensive international operations. Access to this system includes the ability to view American’s most sensitive personally identifiable information, such as social security numbers, bank account numbers, home addresses, and more. It also gives Mr. Musk and his allies outside the federal government the ability to unilaterally and illegally cut off federal payments,” Reed wrote.

The previous person in charge of Treasury’s payment system, the Fiscal Assistant Secretary of the United States Treasury, who served in that position since 2014 — and who President Donald Trump named as acting Treasury Secretary while Mr. Bessent went through the nominations process — was put on paid administrative leave and then resigned after refusing to do what Bessent did: spark an unprecedented payment system crisis by turning over the keys to America’s payment system to an unelected billionaire with significant foreign business ties and his partisan cronies and potentially empowering DOGE to go after President Trump’s perceived enemies.

Reed warned that Secretary Bessent’s departure from long-standing Treasury procedure could endanger the nation’s financial well-being and harm ordinary citizens. Granting Elon Musk’s team the single most comprehensive dataset on virtually every American with no checks, transparency, or accountability is extremely dangerous and unprecedented.

“It is longstanding Treasury Department procedure to restrict access to this system to a handful of individuals who have undergone a full background investigation evaluating criminal history, foreign ties, trustworthiness, and finances, among other issues. This process is essential to protect Americans’ personal information and benefits from being compromised by hostile nations, to protect taxpayer funds from being pilfered by untrustworthy individuals, and to ensure that payments owed to the American people are made reliably and on time. This deviation from Treasury practice follows an emerging pattern of DOGE impeding fundamental government functions, placing taxpayer funds at risk, and intruding on Americans’ privacy—actions that have placed the special interests of a small group of well-connected individuals above American families. Indeed, the individuals who have just received access to government payment systems have not sworn an oath to the Constitution and have no obligation to act in the general interest,” Reed wrote.

Reed urged Treasury to take four key steps immediately, including:

• Revoking the access to U.S. government payment systems that you provided to surrogates of Mr. Musk, who have not been property vetted;

• Appointing a new Fiscal Assistant Secretary who is a nonpartisan expert with experience working in the Bureau of the Fiscal Service across Administrations of both parties;

• Refusing to honor any requests by Mr. Musk’s surrogates or the DOGE to block disbursements of any funds; and

• Taking steps to protect Americans’ personal information from being exploited for commercial purposes by individuals who were granted access to U.S. government payment systems.

Reed also demanded written responses to the following questions no later than February 10, 2025:

• Which individuals have you allowed to access to the federal payment systems and why?

• Do all those who have access to the systems hold security clearances? If not, why not?

• Have you provided any non-federal employees or any individuals working at the behest of Mr. Musk, as part of DOGE or any other entity, with source code information related to the federal payment systems?

• Do any non-federal employees have access to the systems or authority to direct or withhold payments? If so, on what authority?

• How many foreign nationals have been granted access to the federal payment systems or been given authority over payments?

• What are you doing to prevent unauthorized access to the systems?

• What assurances are there that Mr. Musk will not be able to use access to the Federal government’s payment system to advance his own business interests or penalize his competitors or critics?

• What are you doing to ensure that political interference will not affect Americans’ access to their Social Security benefits and other critical payments the Bureau of Fiscal Service makes?

• Are you planning to allow the same DOGE cohort access to the Internal Revenue Service’s information technology?

Full text of the letter follows:

February 3, 2025

The Honorable Scott Bessent, Secretary

U.S. Department of the Treasury

1500 Pennsylvania Ave. NW

Washington, DC 20220

Dear Secretary Bessent:

On Friday, January 31, you provided full access to the federal government’s payment systems to surrogates of Elon Musk and representatives of the so-called “Department of Government Efficiency” (DOGE), which operates under the de-facto control of Mr. Musk, a private citizen. To protect our national security and public confidence in our fiscal and economic system, you should immediately reverse this action.

The Treasury Department through the Bureau of the Fiscal Service executes payments on behalf of agencies across the federal government. Last year, Treasury distributed $5.4 trillion in payments for the American public, including Social Security benefits, defense spending and servicemember pay, interest on government bonds, tax refunds, federal grants, and nearly all other obligations owed by the government. Your actions have placed our national security at risk because unvetted individuals, potentially including foreign nationals, now have full access to these systems. According to press reports, these individuals include corporate executives of multinational companies with extensive international operations. Access to this system includes the ability to view American’s most sensitive personally identifiable information, such as Social Security numbers, bank account numbers, home addresses, and more. It also gives Mr. Musk and his allies outside the federal government the ability to unilaterally and illegally cut off federal payments.

It is longstanding Treasury Department procedure to restrict access to this system to a handful of individuals who have undergone a full background investigation evaluating criminal history, foreign ties, trustworthiness, and finances, among other issues. This process is essential to protect Americans’ personal information and benefits from being compromised by hostile nations, to protect taxpayer funds from being pilfered by untrustworthy individuals, and to ensure that payments owed to the American people are made reliably and on time. This deviation from Treasury practice follows an emerging pattern of DOGE impeding fundamental government functions, placing taxpayer funds at risk, and intruding on Americans’ privacy—actions that have placed the special interests of a small group of well-connected individuals above American families. Indeed, the individuals who have just received access to government payment systems have not sworn an oath to the Constitution and have no obligation to act in the general interest.

You should immediately reverse the actions that you took on January 31:

• Revoke access to U.S. government payment systems that you provided to surrogates of Mr. Musk, who have not undergone full background investigations and have not been property vetted;

• Appoint a new Fiscal Assistant Secretary who is a nonpartisan expert with experience working in the Bureau of the Fiscal Service across Administrations of both parties;

• Refuse to honor any requests by Mr. Musk’s surrogates or the DOGE to block disbursements of any funds; and

• Protect Americans’ personal information from being exploited for commercial purposes by individuals to whom you have granted access to U.S. government payment systems.

In addition, because you have already have given individuals operating at the behest of Mr. Musk access to U.S. government payment systems, please provide written answers to the following questions no later than February 10, 2025: